'^/^ 


THE  COMPLETE 


COST-KEEPER 


Some  Original  Systems  of 

SHOP  COST-KEEPING 

OR 

FACTORY  ACCOUNTING 

TOGETHER  WITH 

AN    EXPOSITION    OF    THE     ADVANTAGES    OF    ACCOUNT 

■       KEEPING    BY    MEANS   OF   CARDS   INSTEAD   OF 

BOOKS,  AND  A  DESCRIPTION  OF  VARIOUS 

MECHANICAL  AIDS  TO  FACTORY 

ACCOUNTING 

Now  compiled  for  the  first  time  by 
HORACE  LUCIAN  ARNOLD 


NEW  YOWr  AND- feewI)ON 

The  Engineering  Magazine  Press 

1900. 


Copyright,  1899, 

BY 

JOHN  R.  DUNLAP 


CONTENTS. 


I. — Preface v 

Showing  the  present  conditions  which  make  this  book 
useful. 

II. — The  Necessity  for  the  Factory i 

An  abstract  of  the  succeeding  section,  which  is  entitled 

III. — Manufacture^  and  Commerce 2 

Showing  that  employment  as  wage-earners  in  the  ser- 
vice of  others  is  the  inevitable  form  of  existence  for 
the  larger  portion  of  mankind,  and  deducing  the  con- 
clusion that  advanced  Factory  Management  is  one  of 
the  principal  factors  in  the  advancement  of  humanity 
at  large. 

IV. — A  Collective  Production  Order  System 16 

A  simple  cost-finding  system,  using  only  a  single  card, 
and  found  entirely  satisfactory  in  the  small  establish- 
ment where  it  is  employed. 

V. — A  Simple  System  for  Duplicate  Work 37 

Using  only  five  forms,  and  adapted  for  a  small  esta- 
blishment in  which  a  standard  product  in  a  limited 
number  of  sizes  is  made. 

VI. — A  General  System  for  a  Medium-size  Works.  . .  52 
Applied  to  the  accounting  for  a  special  product,  in- 
cluding repairs  as  well  as  original  work,  and  giving 
very  accurate  results. 


82884 


iv  CONTENTS. 

VII. — A  Complete  System  for  a  General  Iron  Works.  .  83 
Used  with  great  success  in  a  works  employing  300 
men  in  general  machine  construction,  including  ma- 
chine and  pattern  shops,  foundry,  smithy,  and  boiler 
shop. 

VIII. — An  Elaborate  System  for  a  Highly  Organized  Es- 

LISHMENT     196 

Including  in-and-outdoor  accounting  for  every  depart- 
ment of  construction,  erection,  and  operation.  This  is 
exclusively  a  card  system,  and  the  costs  are  obtained 
in  minute  detail  and  with  much  accuracy,  and  is  fully 
detailed  by  the  originator  for  this  work,  including  re- 
productions of  all  forms.  » 

IX. — A  Special  Card  System  for  an  Electrical  Works'.  292 
The  work  of  a  professional  expert  in  factory  organi- 
zation, and  a  model  of  simplicity  and  effectiveness. 
This  system  is  fully  detailed  by  its  originator  and  is 
applicable  to  many  situations. 

X. — The  Card  System  of  Accounting 345 

A  general  consideration  of  the  economies  and  advan- 
tages arising  from  the  use  of  cards  instead  of  books. 

« 

XL — General  Expense  Accounts 353 

Including  the  important  subjects  of  Inventory,  Depre- 
ciation, and  the  distribution  of  General  Expense. 

XII. — Mechanical  Aids  to  Accounting 363 

A  brief  description  of  such  mechanical  appliances  as 
have  been  found  useful  and  acceptable  in  connection 
with  factory-accounting  and  cost-keeping. 


PREFACE. 

Am  I  obtaining  my  true  costs?  Am  I  obtaining  my  costs 
in  the  best  form?  Am  I  exactly  informed  as  to  all  separate  ex- 
pense items?  Do  I  pay  too  much  for  cost-keeping,  or  shall  I 
pay  more  and  obtain  my  costs  more  in  detail?  Are  there  known 
cost-keeping  systems  so  much  better  than  mine  that  I  should 
change  my  present  methods  ? 

These  are  questions  which  many  shop  managers  ask  them- 
selves, because  they  are  informed  as  to  the  operation  and  capa- 
bilities of  their  individual  cost-keeping  systems  only. 

Until  very  lately  all,  or  nearly  all,  the  cost-keeping  systems 
in  use  in  American  shops  were  original  creations,  produced  by 
the  establishments  using  them. 

In  almost  all  cases  the  methods  employed  were  kept  secret, 
hence  comparisons  have  been,  until  now,  impossible. 

Precisely  as  the  man  who  knows  but  one  language  may  be 
truly  said  to  know  none,  so  a  manager  who  knows  only  his  own 
cost-keeping  system,  is  incapable  of  fully  understanding  even  that 
one  system. 

Values  can  be  fixed  only  by  comparison.  To  know  any  one 
thing  fully  and  entirely,  many  other  similar  and  related  things 
must  be  known. 

This  book  is  designed  to  give  such  an  exhibition  of  widely 
differing  systems  of  cost-keeping  now  in  satisfactory  use,  as  will 
afford  any  manager,  although  not  himself  an  accountant,  the 
knowledge  needful  to  an  intelligent  comparison  between  his  own 
methods,  and  cost-keeping  methods  in  general. 

Little  can  be  gained  from  a  mere  theoretical  presentation  of 
the  essentials  of  a  good  cost-keeping  system,  but  there  is  much 
to  be  gained  by  an  acquaintance  with  various  different  cost-keep- 
ing systems  which  are  practical  successes,  inasmuch  as  they  are  in 
regular  use  by  successful  manufacturing  establishments. 


vi  PREFACE. 

Hence  this  book  presents  first,  different  original  cost-keeping 
systems,  varying  in  complexity  from  one  so  simple  that  the.  entire 
history  of  each  production  order  is  recorded  on  a  single  printed 
form,  up  to  some  of  the  most  elaborate  methods  known,  by  which 
any  desired  degree  of  minuteness  in  subdivision  of  accounting 
can  be  obtained. 

These  various  systems  of  Shop  Cost-Keeping,  or  Factory 
Accounting,  are  so  fully  and  completely  described  and  illustrated 
as  to  enable  any  manager,  if  he  pleases,  to  install  and  operate  them 
in  his  own  works,  even  though  he  may  not  be  an  accountant,  with 
entire  success.  In  all  cases  every  blank  form  is  given  in  full  and 
has  its  actual  sizes  specified,  together  with  a  full  exposition  of 
its  own  individual  office  and  its  relation  to  and  influence  upon 
the  operation  of  the  other  forms  used,  if  such  there  be. 

Every  step  in  the  use  of  these  several  systems  is  minutely  de- 
tailed, and  when  the  factory  production  is  separated  from  the 
purely  commercial  operation  of  disposing  of  the  factory  product, 
the  ^commercial  books  are  also  described,  and  in  all  cases  the  num- 
ber of  men  at  work  and  the  number  and  class  of  book-keepers, 
clerks,  messengers,  time  takers  and  so  on,  employed  in  cost- 
accounting  is  given,  so  that  any  manager  can  tell  about  what  he 
may  expect  the  use  of  a  similar  system  to  cost  in  his  own  estab- 
lishment. 

The  final  cost-keeping  system  here  presented  is  supplied  by 
Mr.  James  Newton  Gunn,  of  Boston,  wha  is  constantly  engaged 
in  the  installation  of  improved  systems  of  cost-keeping  in  the 
foremost  American  establishments,  and  although  given  as  a  sup- 
posititious system,  is  practically  a  late  installation  of  Mr.  Gunn's 
in  one  of  the  the  larger  American  electrical  shops,  differing,  how- 
ever, in  some  points  which  are  deemed  of  importance  by  its 
originator. 

Book-keeping  can  be  practiced  without  books,  and  account- 
ing can  be  performed,  and  is  performed,  in  some  large  establish- 
ments, without  accountants,  after  a  suitable  accounting  system  has 
been  fully  established. 

Inscribed  cards  can  be  made  to  take  the  place  of  book  entries, 
and  these  cards  have  the  vast  advantage  of  serving  different 
offices  as  they  pass  through  the  works,  thus  saving  many  tran- 
scriptions. 


PREFACE.  vii 

The  use  of  cards  is  fully  explained  in  the  article  on  the  topic, 
which  is  furnished  expressly  for  this  book  by  one  of  the  highest 
authorities  on  the  subject. 

Many  mechanical  aids  to  factory  accounting  are  in  use,  some 
known  to  the  public,  and  some  unknown  outside  of  the  establish- 
ments where  they  originated.  All  such  devices  known  to  the 
compiler  of  this  volume  are  herein  fully  described  and  illustrated, 
including  different  forms  of  mechanical  time  recorders,  dating 
clock  stamps,  program  clocks,  and  other  mechanical  aids  in  de- 
termining shop  chronology. 

Various  forms  of  computing  machines  are  also  illustrated 
and  described,  some  of  them  being  great  labor  savers,  although  as 
yet  these  ingenious  and  highly  efficient  devices  are  not  very  much 
used. 

In  brief,  it  is  intended  that  this  book  shall  furnish  to  the  fac- 
tory manager  a  full  exhibit  of  the  latest  and  most  advanced 
methods  and  appliances  used  in  shop  cost-keeping,  and  thus  aid, 
in  some  degree  at  least,  in  the  advance  of  America  toward  its 
ultimate  position  among  the  leading  manufacturing  nations  of  the 
world. 


THE  NECESSITY  FOR  THE  FACTORY. 


While  this  book  is  made  up  almost  wholly  of  cost-keeping 
systems  which  are  in  successful  use  in  prosperous  manufactur- 
ing establishments,  and  is  hence  exclusively  practical  in  its  char- 
acter, offering  no  theories  or  speculations  whatever,  but  giving 
only  what  experience  has  fully  proved  to  be  valuable,  the  author 
has  thought  it  proper  to  show,  under  the  heading  "Manufactures 
and  Commerce,"  why  and  how  it  comes  that  the  factory  must 
exist,  and  the  factory  workman  or  shop  hand  must  unavoidably 
form  so  large  and  numerically  important  a  part  of  the  population 
of  all  civilized  countries. 

At  first  sight,  the  factory  or  workshop  employing  a  large 
number  of  workmen  under  one  management,  does  not  seem  to 
be  an  absolute  necessity.  Every  man  is  free  to  choose  his  own 
line  of  work,  and  many  persons,  seeing  a  great  number  of  work- 
men giving  their  whole  lives  to  the  enrichment  of  successful  fac- 
tory owners,  while  the  workmen  themselves  work  hard  and  fare 
but  poorly,  and  are  seldom  able  to  save  any  considerable  part  of 
their  wages,  and  often  end  an  industrious  life  in  poverty,  are  led 
to  believe  that  the  factory  is  not  a  necessity,  and  is  not  a  benefit 
to  mankind  at  large.  These  persons,  seeing  all  of  the  hardships 
of  the  life  of  factory  workers,  often  form  and  express  the  opinion 
that  the  highest  welfare  of  the  human  race  demands  a  return  to 
the  more  simple  lives  of  former  days,  when  a  much  larger  pro- 
portion of  the  population  lived  on  farms,  and  plowed  and  sowed 
and  reaped,  and  spun  and  wove  wool  and  flax,  and  were  compara- 
tively independent  of  employers,  the  factory  having  hardly  begun 
to  exist. 

Because  many  persons  entertain  these  erroneous  convictions 
concerning  the  best  disposition  which  workers  can  make  of  their 
labor,  "Manufactures  and  Commerce,"  which  is  a  brief  but  com- 
prehensive exposition  of  industrial  economics,  is  given  here,  al- 
though it  forms  no  part  of  actual  factory  accounting,  and  need 
not  be  read  by  those  who  do  not  care  for  those  underlying  and 
often  not  plainly  perceptible  motives  and  influences,  which  are 


2  THE  COMPLETE  COST-KEEPER. 

nevertheless  all  powerful  in  their  action,  and  being  all  powerful 
must  forever  direct  general  conduct  of  human  affairs. 

Such  readers  can  pass  directly  to  the  first  of  the  detailed 
systems  given,  although  the  author  is  confident  that  many,  very 
many,  factory  managers  are  deeply  interested  in  all  that  concerns 
the  fullest  understanding  of  the  factory,  considered  in  its  broad 
relations  to  human  effort,  and  are  earnest  in  their  endeavors  to 
add  to  the  lives  of  their  workmen,  and  hence  will  read  with  atten- 
tion the  few  pages  here  devoted  to  industrial  economics. 


MANUFACTURES  AND  COMMERCE. 


In  the  broad  view,  man  is  a  microscopic  parasite,  possibly  an 
accidental  product  of  thermal  conditions,  inhabiting  the  surface 
of  one  of  the  smaller  planets  of  a  minor  solar  system  of  the  uni- 
verse.   This  wide  view  is  not  of  commercial  interest. 

In  a  commercial  sense,  each  individual  man  is  to  himself 
the  most  important  of  created  things,  and  the  central  figure  of 
existence.  This  narrow  view  is  of  great  commercial  interest,  be- 
cause it  makes  every  individual  of  the  human  race  a  manufacturer, 
producer,  buyer  and  consumer. 

Every  man  is  conscious  of  certain  needs  and  desires,  and 
devotes  his  existence  to  supplying  those  needs  and  gratifying 
those  desires,  in  proportion  to  their  urgency  and  his  own  ability. 
Each  individual  soon  discovers  that  he  is  expected  to  give  some- 
thing in  exchange  for  what  he  wishes  to  use  for  his  own  satisfac- 
tion or  pleasure  ,and  such  unavoidable  exchanges  form  the  basis 
which  supports  all  trade,  manufacture  and  commerce,  as  well  as 
all  social  and  political  structures. 

The  individual  who  can  produce  nothing  desired  by  other 
individuals  of  our  race  soon  finds  himself  without  the  means  of 
supporting  his  own  existence,  and  in  general  terms,  it  is  true  that 
whatever  cannot  pay  its  owji  way  must  presently  perish. 

This  brings  all  the  multifarious  procedures  incidental  to  ex- 
change of  values  into  view. 

Values  must  exist  before  they  can  be  exchanged.  Hence 
there  must  be  makers  before  there  can  be  users,  manufacturers 


THE  COMPLETE  COST-KEEPER.  3 

before  there  can  be  traders,  and  articles  of  commercial  value  be- 
fore commerce  can  send  its  white  winged  fleets  across  the  oceans. 

What,  then,  is  value? 

The  essential  characteristic  of  commercial  value  is  the  pos- 
sibility of  exchange,  or  of  facilitating  exchange. 

There  is  also  a  value  of  individual  use,  easement  and  delight 
inhering  in  some  things  not  exchangeable,  but  this  value  belongs 
to  the  domestic  side  of  life  or  else  looks  toward  hermitage,  and 
so  need  not  be  considered  here  where  the  profits  expected  to  arise 
from  manufactures  and  commerce,  and  value  ownership,  are  the 
essential  incentives  to  exertion  and  achievement. 

Two  conditions  go  before  the  possibility  of  exchange.  First, 
the  articles  to  be  exchanged  must  exist,  and,  second,  those  arti- 
cles must  be  within  the  power,  control,  and  handling,  of  those 
willing  to  make  the  exchange. 

Gold,  still  concealed  in  the  rocky  recesses  of  the  mine,  the 
mahogany  tree  yet  standing  in  a  South  American  forest,  iron  ore 
lying  in  the  hills  of  Lake  Superior,  the  unpastured  verdure  of  a 
Texas  cattle  range — these  are  possibilities  of  values,  but  they  are 
not  actual  values,  because  they  are  not  yet  in  form  for  actual  ex- 
change. The  gold  must  be  mined,  smelted  and  assayed,  the  tree 
must  fall  before  the  woodman's  axe,  the  miner's  shovel  must  move 
the  ore,  and  the  herdsman  miist  drive  his  cattle  to  the  grassy 
plains,  before  the  possible  values  become  actual  values,  ready  of 
exchange  because  they  have  been  fitted  through  the  agency  of 
human  labor  for  human  use. 

This  leads  directly  to  a  consideration  of  human  labor,  the 
duration  of  which  is,  in  general  terms,  the  universal  measure  of 
value. 

Industrially  speaking,  human  labor  may  be  defined  as  human 
muscular  eflfort,  directed  to  the  production  of  some  article  or 
thing,  which  thing  is  expected  to  possess  exchangeable  value  when 
completed. 

It  is  impossible,  so  far  as  is  commonly  known,  to  produce 
motion  without  time  in  which  to  make  that  motion.  All  muscular 
labor  consists,  broadly,  of  motion  continued  through  a  certain 
duration  of  time. 

Hence  the  possibility  of  labor  performance  depends  wholly 


4  THE  COMPLETE  COST-KEEPER. 

upon  time  duration  in  the  future.  The  labor  which  might  have 
been  performed  in  the  minute  just  passed  in  idleness,  is  forever 
lost  to  the  individual  and  to  the  world.  The  labor  which  may  be 
performed  in  the  coming  minute  must  begin  when  the  minute  be- 
gins and  continue  while  the  minute  pasess,  if  the  minute's  possi- 
bilities of  value  gain  by  labor  are  to  be  realized. 

Day  dawns ;  the  laborer  arises,  fitted  by  sleep  to  begin  his 
task  anew ;  the  possibilities  of  individual  gain  by  his  own  labor 
are  befo*re  him,  but  these  possibilities  of  gain  for  the  day  are 
abbreviated  by  every  tick  of  the  clock  as  it  marks  the  changeless 
flight  of  time  from  the  unborn  future  to  the  dead  past. 

Mental  labor  cannot  be  measured  and  valued  by  the  time 
occupied  in  its  performance.  The  conception  of  a  fortunate 
thought  may  occupy  but  an  instant  of  time,  yet  this  thought  car- 
ried into  practice  may  earn  money  for  generations  to  come. 
Hence,  although  mental  labor  must  always  precede  and  accom- 
pany the  value  gaining  exertion  of  muscular  labor,  it  is  evident 
that  mental  labor  need  not  be  taken  into  account  here,  where  in- 
dustrial problems  wholly  dependent  on  the  flight  of  time  form  the 
only  subjects  of  consideration. 

Defining  human  labor  as  human  muscular  effort,  exerted 
through  a  certain  time  duration  towards  the  production  of  things 
expected  to  have  exchange  value  when  completed,  acceptance  of 
labor  duration  as  the  one  standard  for  the  measurement  of  ex- 
change values  of  labor  product  becomes  unavoidable. 

In  fewer  words,  labor  duration  measures  commercial 
exchange  values. 

Thus,  roughly  speaking,  an  ounce  of  gold  is  worth  at  the 
gold  mine  ten  times  as  much  as  a  ton  of  iron  ore  ready  for  Lake 
Superior  shipment,  because  it  takes  ten  times  as  much  human 
labor,  measured  in  time  duration,  to  obtain  the  ounce  of  gold  as 
is  needed  to  procure  the  ton  of  iron  ore. 

The  possibility  of  value  is  everywhere  present ;  the  earth  may 
be  made  to  bring  forth  its  fruits,  the  sea  holds  fish,  the  running 
river  may  be  made  to  drive  the  factory  wheels,  and  the  winds, 
so  idly  blowing,  may  be  made  to  toil  in  turning  the  millstone  or 
the  dynamo,  but  none  of  this  possible  value  becomes  actual  value 
until  after  it  has  passed  into  human  possession,  and  assumed  an 


THE  COMPLETE  COST-KEEPER.  5 

exchangable  form  through  the  expenditure  of  human  labor,  or 
labor  directed  by  the  oversight  of  man.  Hence  while  possible 
values  are  everywhere  existent,  actual  values  are  wholly  depen- 
dent on  labor,  which  not  only  conquers  all,  but  actually  creates 
all,  so  far  as  use  and  value  to  the  human  race  are  concerned,  and 
so  makes  itself  the  foundation  of  wealth,  society,  the  state,  and 
continued  human  existence. 

Admitting  that  exchange  of  values  is  the  prime  requisite  of 
felicitous  human  existence,  it  becomes  pertinent  to  inquire  what 
exchangable  values  inhere  in  the  average  individual. 

A  new  born  babe  is  helpless,  and  is  without  present  com- 
mercial value ;  it  has  a  possibility  of  future  commercial  value,  and 
a  present  non-commercial  individual  value  to  its  parents.  At  the 
age  of  fourteen  or  fifteen  the  youth  has  cost  a  certain  investment, 
and  in  ordinary  cases  may  be  held  as  ready  to  begin  fitting  him- 
self to  take  an  active  part  in  manufactures  or  commerce.  At  the 
age  of  twenty  or  twenty-one  the  young  man  reaches  the  period  of 
individual  effort  and  should  be  able  to  earn  $500  yearly,  of 
which  say  $400  go  to  maintenance  and  repairs  of  the  individual, 
leaving  $100  net  gain,  which,  with  money  at  2^  per  cent,  inter- 
est value,  gives  this  young  manufacturer  or  merchant  an  in- 
dividual cash  value  of  $4,000,  thus  making  him  a  capitalist  with 
ample  means  to  begin  what  may  become  a  successful  career  as 
a  maker  or  seller  of  things,  that  is  to  say,  in  maunfactures  or  in 
commerce. 

It  thus  appears  that  the  average  man  has  a  certain  value  in 
the  form  of  his  own  labor  possibilities  which  he  can  exchange 
for  the  things  needful  to  his  continued  existence. 

This  labor  may  be  expended  in  tilling  the  soil,  in  manufac- 
turing operations,  or  in  buying  and  selling. 

If  the  individual  elects  manufacture  as  his  method  of  ex- 
changing his  labor  for  what  he  desires,  he  may  conduct  an  indi- 
vidual business,  as  a  blacksmith,  a  wheelwright,  a  shoemaker  and 
so  on,  the  limiting  condition  of  such  individually  directed  labor 
being  the  value  of  plant  demanded  for  successful  operation. 

Obviously,  the  individual  whose  only  capital  is  his  own  labor, 
cannot  enter  at  once  upon  large  operations,  requiring  great 
expenditures  of  accumulated  labor  in  form  for  ready  exchange, 
which  is  termed  capital,  or  wealth. 


6  THE  COMPLETE  COST-KEEPER. 

Hence,  in  a  vast  majority  of  instances,  the  labor  exchange 
is  effected  by  a  sale  of  the  labor  of  the  individual  to  a  second 
person,  v^ho  directs  the  labor  so  purchased  in  the  production  of 
some  form  of  value.  This  method  of  effecting  the  exchange  of 
labor  for  things  desired  by  the  laborer,  brings  the  manufacturer 
and  the  manufactory  into  view. 

The  average  individual  has  nothing  whatever  except  his  own 
labor  as  a  dependance  for  the  continuance  of  his  existence,  and 
for  such  pleasures  as  existence  may  hold  for  him.  From  this 
point  of  view  labor  is  clearly  seen  to  be  all,  the  very  sum  and  total 
of  man's  life  on  earth. 

•  If  labor  is  all,  the  importance  of  the  factory  and  the  manu- 
facturer, indispensible  precedents  to  the  best  results  of  labor,  be- 
come second  to  no  other  potentiality.  Labor  is  all ;  it  is  church, 
state  and  existence,  and  that  nation  which  manages  labor  best, 
and  so  obtains  the  greatest  good  for  an  hour  of  labor  expended, 
must  inevitably  rule  the  earth.  Where  labor  is  best  managed, 
there  must  come  the  most  wealth,  the  most  comfort,  the  best  food 
and  the  most  human  happiness ;  the  best  labor  management  means 
the  highest  labor  hour  production,  and  hence  includes  the  possi- 
bility of  the  highest  labor  hour  recompense,  and  the  least  inter- 
rupted labor  employment. 

Considering  the  factory  and  the  factory  manager  as  produ- 
cers of  exchangable  values,  it  is  at  once  seen  that  they  are  every- 
where present.  The  sheared  fleece  of  wool  is  the  finished  product 
of  the  sheep  farm  and  the  shepherd ;  this  fleece  becomes  the  raw 
material  of  the  cloth  weaver  and  dyer,  who  sell  their  finished 
product  to  the  cloth  merchant;  this  cloth  next  becomes  raw  ma- 
terial for  the  clothing  manufacturer  who  sells  his  finished  product 
of  garments  ready  to  wear  to  the  clothing  merchant ;  after  the 
clothing  has  been  cast  off  by  the  wearer,  it  may  again  become  raw 
material  for  the  shoddy  mill,  and  so  on,  to  the  extreme  limit  of 
value,  which  is  defined  by  the  possibility  of  exchange,  as  pre- 
viously shown. 

Considering  the  manufacturer  and  the  merchant,  it  is  seen 
that  the  manufacturer  changes  the  form  or  constitution  of  the 
values  which  he  manipulates,  while  the  purely  commercial  agent 
does  not  change  the  form  or  nature  of  the  values  which  he  han- 


IVERSITY  I 

THE  COMPLETE  COST-KEEPER.  7 

dies,  but  changes  their  location  and  ownership,  adding  to  the 
values  he  handles  by  his  own  labor  and  foresight. 

The  maufacturer  in  most  cases  acts  first  as  maker  in  chang- 
ing the  form  of  the  values  which  enter  his  factory,  and  afterward 
as  a  merchant  in  disposing  of  his  finished  product.  In  some  sys- 
tems of  factory  accounting  these  two  functions  of  the  maufac- 
turer are  separated,  and  two  sets  of  accounts  are  kept,  the  one 
relating  to  changes  of  value  form,  and  the  other  relating  to 
changes  of  finished  value  location  and  ownership.  In  other  cases 
the  factory  accounts  are  made  to  include  the  purely  commercial 
transactions  incident  to  the  disposition  of  finished  production 
values. 

In  some  cases  the  manufacturer  sells  his  entire  product  in 
bulk  to  a  single  merchant,  and  so  becomes  a  maker  only,  pure 
and  simple. 

In  both  cases  the  factory  accounting  is  the  same. 

Having  thus  briefly  considered  the  inevitable  relations  of 
mankind  to  manufactures  and  commerce,  and  defined  value,  the 
accumulation  and  distribution  of  which  is  the  motive  of  all  human 
effort,  a  limited  consideration  of  factory  practice  is  next  in  order. 

Broadly,  factory  practice  consists  in  adding  to  raw  material 
an  increment  of  labor  value,  this  union  of  the  two  values  con- 
stituting the  finished  product. 

Obviously  the  factory  must  exist  before  the  workman  can 
perform  his  duties  therein,  hence  the  first  cost  of  the  factory, 
ground,  buildings,  and  plant,  forms  the  first  element  of  manufac- 
turing cost  of  expense,  and  the  maintenance  of  the  buildings  and 
plant  forms  the  second  item  of  expense.  It  is  proper  to  say  here, 
that  competition  and  improvement  force  frequent  changes  in  plant 
value,  which  includes  all  tools  and  appliances  used  in  factory 
production,  because  if  the  general  average  of  the  plant  effective- 
ness of  a  certain  factory  is  exceeded  by  that  of  any  other  fac- 
tory engaged  in  the  same  line  of  production,  a  condition  of  infe- 
riority is  established  which,  if  not  removed  by  improvement  of 
plant,  leads  to  certain  extinction. 

Proof  of  this  proposition  is  had  in  the  continual  decay  of  once 
prosperous  and  renowned  manufactories,  which  simply  ceased  to 
advance  when  success  came  to  them,  forgetting  that  every  day 


8  •  THE  COMPLETE  COST-KEEPER. 

sees  all  things  of  human  interest  bettered  and  improved,  and  that 
to  let  well  enough  alone  is  to  certainly  fall  behind  competitors. 
This  assurance  of  future  improvement  gives  even  the  most  recent 
manufacturing  plant  an  uncertain  value,  and  in  the  present  era  of 
great  mechanical  changes,  necessitates  a  large  depreciation  per- 
centage in  plant  value  in  factory  accounting,  if  present  value  is 
to  be  correctly  represented.  Besides  this  depreciation  by  com- 
parison or  competition,  there  is  a  depreciation  of  plant  due  to  use, 
which  may,  where  up-keep  is  efficient,  be  very  small,  or  very 
great,  according  to  the  nature  of  the  service  performed  by  the 
plant.  Whatever  the  plant  depreciation  by  comparison  and  use 
may  be,  the  total  depreciation  must  be  fully  recognized  in  the 
factory  accounting  if  the  balances  are  to  be  regarded  as  true  rep- 
resentations of  present  values.  This  point  is  of  the  broadest  sig- 
nificance, and  cannot  be  too  vividly  present  in  the.  mind  of  the 
factory  accountant  who  desires  to  produce  an  accurate  exhibit  of 
his  real  industrial  and  financial  condition.  A  manufacturing  plant 
which  is  as  much  as  two  or  three  per  cent  below  competitors  in 
average  efficiency,  is  doomed  to  extinction  if  allowed  to  remain  in 
that  condition. 


THE    FACTORY. 


Supposing  that  the  factory  exists,  that  the  manufacturer 
opens  its  doors  for  business,  that  orders  for  the  factory  product 
are  received,  and  that  workmen  are  present,  ready  to  produce 
these  orders. 

In  some  way  the  various  production  elements  of  the  factory 
must  be  called  into  action.  There  must  be  a  path  made  over 
which  the  raw  material  can  travel  through  the  factory,  receiving 
as  it  goes  such  changes  of  form  as  will  convert  this  raw  material 
into  finished  product. 

In  some  way,  also,  there  must  be  an  account  kept  of  the  mate- 
rial and  labor  used  in  the  production  of  the  customer's  order,  so 
that  the  cost  of  this  production  can  be  accurately  determined. 

What  orders,  verbal  or  written,  must  be  given  to  open  a  way 


THE  COMPLETE  COST-KEEPER.  9 

for  the  passage  of  the  work  through  the  factory,  and  in  what  form- 
shall  the  record  of  the  passage  of  that  work  through  the  factory- 
be  kept? 

If  all  men  had  absolutely  infallible  memories,  and  were  in- 
capable of  making  any  statement  at  variance  with  those  memories, 
it  would  be  possible,  perhaps,  to  carry  on  a  successful  and  pros- 
perous manufacturing  business  without  the  use  of  shop  books  or 
factory  accounts. 

These  conditions,  however,  do  not  obtain.  It  is  true  that 
there  are  some  men  who  have  memories  which  seem  to  be  almost 
faultless,  but  it  is  well  known  that  no  two  witnesses  ever  agree 
exactly  in  regard  to  the  details  of  any  occurrence  observed  by 
both.  The  simplest  order  delivered  verbally,  either  in  the  office 
or  in  the  shop,  becomes  a  matter  of  uncertainty  the  moment  the 
words  are  spoken,  and  the  full  scope  and  intent  of  the  order  can 
be  made  certain  only  by  a  transcript  in  black  and  white,  verified 
by  the  giver  of  the  order. 

Even  if  entire  honesty  and  sincerity  prevailed  in  all  business 
transactions,  the  mere. differences  due  to  variations  in  individual 
understandings  of  orders,  would  render  it  impossible  to  conduct 
any  business  of  magnitude  on  verbal  specifications.  This  conclu- 
sion renders  factqry  records  of  some  sort  a  necessity.  Exactly 
what  those  records  shall  be,  from  the  receipt  of  the  customer's. 
order  to  the  statement  of  shipment  of  finished  goods,  is  the  ques- 
tion which  this  book  will  endeavor  to  answer  by  giving  examples- 
of  various  systems  of  factory  accounting  which  are  now  in  suc- 
cessful operation. 

Factory  accounting  can  be  performed,  long  hand,  by  the  use 
of  the  ordinary  commercial  books,  which  are  a  blotter  ni  which  is 
recorded  a  plain  statement  of  every  transaction  made,  a  day-book, 
in  which  the  blotter  entries  are  translated  into  commercial  lan- 
guage, a  journal  in  which  the  day-book  entries  are  once  more 
translated  into  debit  and  credit  items,  and  a  ledger  in  which  these 
debit  and  credit  journal  items  are  collected  in  individual  accounts- 
Applying  this  ordinary  set  of  commercial  books  to  the  purposes 
of  factory  accounting,  the  customers  order  may  be  written  out  in 
full  on  the  blotter.  The  charges  against  this  order,  for  both  mate- 
rial and  labor,  may  also  appear  on  the  blotter.    The  blotter  records 


lo  THE  COMPLETE  COST-KEEPER. 

may  be  transcribed  in  condensed  form  to  the  day-book  and  these 
•day-book  entries  can  be  debited  and  credited  in  the  journal  to  the 
proper  factory  departments,  and  such  ledger  accounts  may  be 
opened  as  will  show  by  their  final  footings  upon  the  completion  of 
the  order,  what  apportionment  of  credit  should  be  made  to  each 
department  for  the  production  of  this  finished  order.  Such  a 
system  of  factory  accounting  is  manifestly  cumbersome,  involv- 
ing numerous  transcriptions  each  with  its  own  liability  of  error, 
and  failing  wholly  to  make  one  entry  serve  more  than  one  pur- 
pose, which  is  one  of  the  principal  points  aimed  at  in  modern 
factory  accounting. 

If  we  consider  the  factory  in  its  simplest  form,  where  one 
single  workman  is  both  master  and  man,  there  is  no  question  in 
regard  to  the  duties  of  that  man.  What  is  to  be  done,  he  does. 
But  as  soon  as  even  one  additional  workman  is  employed  by  this 
master,  questions  as  to  the  duties  of  the  subordinate  workman 
immediately  arise.  As  the  number  of  workmen  in  the  charge  of 
the  master  increases  and  it  becomes  necessary  to  sub-divide  the 
oversight,  these  questions  as  to  the  exact  scope  and  limitations  of 
duty  exercised  by  each  individual  become  more  important.  It 
is  not  necessary  to  elaborate  this  point.  The  first  step  towards 
•factory  organization  is  the  allotment  of  specific  duties,  not  to  be 
exceeded,  and  not  to  be  neglected,  to  each  official  of  whatever 
degree. 

In  many  cases,  even  in  large  factories,  by  which  is  meant 
establishments  employing  from  500  to  1,000  workmen,  it  is  found 
advantageous  to' have  some  of  the  officials  exercise  more  than  one 
function.  A  proper  combination  of  these  separate  functions  to  be 
exercised  by  a  single  individual  is  of  the  greatest  importance,  al- 
though it  is  perhaps  impossible  to  give  any  rules  of  universal 
application  for  forming  these  combinations,  as  they  depend  very 
largely  upon  the  nature  of  the  factory  product. 

In  the  succeeding  examples  of  factory  accounting,  the  duties 
of  each  official  employed  are  clearly  stated,  and  the  combinations 
of  employment  devolving  upon  each  individual  are  specified. 

Suppose  an  order  is  received  and  entered  in  a  proper  book 
in  the  factory  .office.    This  record  can  serve  no  other  purpose  than 


THE  COMPLETE  COST-KEEPER.  ii 

that  of  a  mere  memorandum,  because  the  order  book  cannot  well 
leave  the  office. 

Records  may  be  made  on  cards  instead  of  books,  and  a  card 
can  go  through  the  shop  without  injury  and  hence  may  serve 
other  purposes  than  that  of  a  simple  memorandum. 

Suppose  that  an  order  received  is  entered  on  a  card,  which 
may  easily  be  a  form  printed  in  blank.  In  some  manufactories, 
with  proper  cataloging  and  a  suitable  blank  form  consecutively 
numbered,  this  card  entry  can  be  made  by  simply  filling  in  the 
date  blanks,  the  number  of  pieces,  and  the  factory  symbol  of  the 
work  ordered,  and  this  card  can  be  vivified,  or  made  a  live  pro- 
duction order,  by  the  addition  of  the  managers  signature  or  hand 
stamp,  and  if  this  hand  stamp  be  self  dating,  the  production  order 
need  not  carry  a  date  blank. 

This  production  order  can  go  into  the  factory,  first  to  the  fore- 
man of  the  proper  department,  who  may  recognize  it  and  acknow- 
ledge it  by  his  own  stamp.  A  memorandum  made  from  this  card 
by  the  foreman  may  go  to  the  rough  stores  and  procure  the  mate- 
rial for  the  order,  and  be  returned  with  the  material  to  the  fore- 
man, who  may  enter  this  material  charge  in  a  blank  space  pro- 
vided for  the  material  charge  on  the  blank  form.  In  the  same 
way  the  labor  charges  may  be  made  in  a  space  provided  on  the 
blank  form  and  this  blank  form  may  be  stamped  by  the  foreman 
with  the  date  of  finishing,  and  then  sent  with  the  finished  order 
to  the  shipping  room,  stamped  by  the  shipping  clerk  with  the  date 
of  shipment,  and  then  finally  returned  to  the  office,  containing  the 
history  and  chronology  of  the  production,  and  this  collective  pro- 
duction order  and  cost  card  may  be  filed  without  transcription  so 
as  to  be  readily  accessible. 

This  procedure  involves  the  least  possible  clerical  labor,  and 
takes  the  least  possible  storage  room  in  the  office ;  it  is  lacking  in 
many  refinements  and  safeguards  of  the  higher  developments  of 
Factory  Accounting,  but  still  it  serves,  and  serves  effectively,  as 
will  be  shown  in  the  detail  of  Factory  Accounting,  as  performed 
by  Strieby  &  Foote,  Drop  Forgers,  Newark,  N.  J. 


12  THE  COMPLETE  COST-KEEPER. 

DEFINITIONS. 


Before  detailing  the  various  systems  of  shop  "Cost-Keeping'* 
or  "Factory  Accounting,"  which  follow,  it  is  proper  to  define 
some  terms  in  regard  to  which  there  is  not,  at  the  present  "time, 
any  commonly  accepted  understanding  among  American  manu- 
facturers. 

First  as  to  the  words  "Shop"  and  "Factory."  Both  of  these 
words  are  used  to  indicate  buildings  in  which  industrial  opera- 
tions are  performed.  We  say  a  "cotton  factory"  or  a  "woolen 
factory,"  but  we  do  not  say  a  "machine  factory  f  we  say  a  "ma- 
chine shop;"  if  the  machine  work  produced  is  small  we  may,  how- 
ever, use  factory,  as  in  a  "sewing-machine  factory,"  or  a  "small- 
arms  factory."  We  also  use  the  word  "mill,"  for  factories  of  some 
kinds,  as  a  "steel-rail  mill,"  an  "iron  mill,"  a  "brass  mill,"  and  so 
on,  and  the  word  "works,"  as  "The  Baldwin  Locomotive  Works," 
or  the  "Niles  Tool  Works."  The  single  word  "Factory,"  includes 
all  buildings  in  which  industrial  operations  are  carried  on,  and  it 
has  become  customary  for  accountants  to  "say  "Factory  Account- 
ing," instead  of  "Shop  Cost-keeping,"  and  to  use  the  expression 
"Factory  Organization,"  and  those  terms  will  be  used  here. 

The  order  from  the  office  to  the  factory  to  make  work,  vari- 
ously called  a  "work-order,"  "job-ticket,"  "  work-slip,"  and  so  on, 
will  be  termed  a  "Production  Order,"  and  orders  from  one  de- 
partment on  another  will  be  called  "Sub-production  Orders."  If 
a  production  order  blank  is  so  printed  as  to  permit  the  charging 
of  various  cost  items  directly  on  the  face  of  the  production  order 
itself,  it  will  be  specified  as  a  "Collective  Production  Order."  If 
the  original  simple  production  order  is  so  devised  that  sub-pro- 
duction orders  may  be  attached  thereto  and  finally  form  parts 
of  the  original  order,  it  will  be  called  a  "Composite  Collective  Pro- 
duction Order." 

Cryptic. — Hidden. 

Cryptogram. — A  written  expression  having  a  hidden  mean- 
ing different  from  what  appears  from  the  commonly  understood 
significance  of  the  words  and  symbols  composing  it,  the  real 
meaning  being  apparent  only  to  readers  holding  the  key  to  the 
cryptogram. 


THE  COMPLETE  COST-KEEPER.  13 

Symbol. — A  short  form  usually  composed  of  figures  or 
figures  and  letters,  carrying  a  special  meaning  in  the  factory 
where  it  is  employed.  The  use  of  shop  symbols  is  now  almost 
universal.  Suppose,  in  a  certain  machine  shop,  the  letter  "M"  is 
made  to  stand  for  machine,  and  all  machines  constructed  in  that 
shop  are  indicated  by  numbers,  then  "M-160"  would  stand  for 
"Machine  160."  Suppose  also  that  "S"  is  made  to  stand  for  steam 
engine,  and  that  each  piece  of  every  machine  receives  on  the 
drawings  and  in  the  casting  and  forging  lists  a  simple  nume- 
rical symbol;  then  "M-160  S-io"  might  be  the  symbol  for  "the 
cross-head  belonging  to  steam  engine  No.  160."  In  a  factory 
where  symbols  are  used  the  workmen  at  once  adopt  the  symbols 
instead  of  the  full  worded  designation  of  things,  because  English 
speaking  persons  naturally  seek  the  shortest  expressions. 

The  best  form  of  shop  symbolizing  is  that  known  as  the 
"Dewey  Decimal  System"  of  cataloging,  because  this  system  is 
general,  not  special,  and  beacause  it  is  expansive,  and  can  be  made 
to  catalog  or  symbolize  any  number  of  pieces,  each  in  its  proper 
place  and  relation,  without  any  change  in  symbols  previously  ap- 
propriated. An  exhibition  of  the  possibilities  of  the  decimal  sym- 
bol is  given  elsewhere,  in  the  National  Switch  and  Signal  Com- 
pany's system  of  Factory  Accounting,  devised  by  Mr.  Charles 
Hansel.  Symbolizing  or  cataloging  of  individual  pieces  is  a  sub- 
ject of  very  great  importance,  and  in  its  best  form,  as  used  by 
Mr.  Hansel,  effects  great  savings  of  labor  in  correspondence,  in 
ordering  work,  and  in  filling  orders,  besides  adding  largely  to  the 
probability  of  accuracy. 

Cost. — That  which  is  paid  for  a  thing. 

Flat  Cost. — The  material  and  labor  cost  of  producing  an 
article  in  a  factory.    This  cost  is  also  spoken  of  as  "prime  cost." 

Total  Cost. — The  entire  factory  cost  of  producing  an  arti- 
cle, being  the  flat-cost  added  to  the  proper  proportion  of  expense- 
cost,  the  expense  being  incurred  in  carrying  on  factory  operations 
and  so  making  the  actual  "finished  product"  or  output  of  the  fac- 
tory a  possibility. 

There  are  various  understandings  of  the  words  "stores," 
"rough  stores,"  "material,"  "finished  stores"  and  "stock,"  when 
these  words  are  used  in  connection  with  substances  which  must 


14  THE  COMPLETE  COST-KEEPER. 

undergo  factory  manipulation  to  become  factory  product,  or  have 
already  been  subjected  to  factory  operations. 

These  ambiguities  of  significance  arise  from  the  various  dis- 
positions which  may  befall  the  things  which  find  a  temporary 
lodgement  in  the  stores  room,  under  the  charge  of  the  stores 
keeper. 

Suppose  the  factory  uses  numbers  of  some  article,  say  a 
spring,  which  is  made  from  sheet  metal  in  the  factory,  and  that 
a  production  order  is  issued  for  10,000  of  these  springs ;  the  stores 
room  issues  the  rough  stores  for  this  production,  say  in  the  form 
of  steel  sheets;  these  sheets  are  already  "material,"  or  "rough 
stores;"  the  springs  are  completed  and  are  returned  "to 
the  stores  room  as  "finished  stores"  or  as  "stock,"  whichever 
term  may  be  adopted.  The  primary  intention  is,  however,  that 
these  finished  springs  are  not  to  be  sold  by  themselves,  but  are 
to  go  to  the  assembling  room  and  there  be  combined  with  certain 
other  parts  to  form  the  wholly  completed  product  of  the  factory; 
in  this  case  the  springs  go  out  of  the  stores  room  first  as  rough 
stores  in  the  form  of  steel  sheets;  they  come  back  to  the  stores 
room  as  finished  stores  or  "stock,"  but  assume  the  part  of  rough 
stores  again  when  issued  to  the  assembling  room,  to  receive  more 
labor  in  making  them  a  part  of  the  structure  to  which  they  belong. 

Again,  suppose  a  customer  using  the  completed  factory  pro- 
duct breaks  a  number  of  these  springs  and  makes  an  order  to  the 
factory  for  repairs,  and  some  of  these  springs  are  shipped  directly 
from  the  stores  room  to  fill  the  order.  In  this  case  the  springs 
are  clearly  finished  stores,  or  merchandise.  From  this  example, 
which  may  be  held  as  fairly  representative,  it  is  seen  that  finished 
parts  temporarily  lodged  in  the  stores  room  hold  an  ambiguous 
position,  since  they  may  be  shipped  as  they  are,  or  may  go  back 
into  the  factory  and  have  more  work  done  on  them  before  they 
are  sold. 

Recognizing  the  foregoing  possibilities,  any  article  or  sub- 
stance lodged  in  the  stores  room  which  must  have  an  increment 
of  labor  added  to  it  before  it  can  become  a  recognized  part  of 
the  factory  production  will  be  termed  "Rough  Stores,"  while  all 
departmental  finished  product  which  may  be  lodged  in  the  stores 
room,  under  charge  of  the  finished  stores  keeper  or  shipping 
clerk,  will  be  spoken  of  as  "Stock." 


THE  COMPLETE  COST-KEEPER.  15 

Stock  may  either  be  sold  as  it  stands  for  repairs,  or  may  go 
back  into  the  factory  for  added  labor.    Hence: 

Rough  Stores. — The  raw  material  which  is  used  to  produce 
"finished  stores"  or  the  characteristic  product  of  the  factory.  Alsa 
spoken  of  as  "raw  material."  To  avoid  ambiguity  everything 
which  must  yet  have  labor  performed  on  it  to  make  it  distinguish- 
able as  the  product  of  the  factory  where  it  is  located,  will  be 
spoken  of  as  "rough  stores,"  although  these  stores  may  be  already 
highly  finished,  as  wire,  sheet  metal,  screws,  springs  or  other 
completed  parts,  purchased  outside  of  the  factory. 

Rough  Stores  Keeper. — The  individual  having  rough- 
stores  in  charge,  in  the  "rough  stores  room,"  usually. 

Finished  Stores. — All  factory  product  ready  for  sale,  or 
ready  for  assembling;  usually  kept  in  the  finished  stores  room, 
under  charge  of  the  Finished  Stores  Keeper,  who  is  often  called,, 
and  often  is,  the  "Shipping  Clerk."  The  finished  stores  room  is 
also  spoken  of  as  the  "Shipping  Room." 

Stock. — Articles  which  have  had  sufficient  labor  performed 
on  them  to  distinguish  them  as  the  product  of  the  factory  where 
they  have  a  temporary  lodgment  in  the  Finished  Stores  room,  and 
which  may  be  sold  as  they  are,  without  more  labor,  or  may  go 
back  into  the  factory  work  rooms  to  be  assembled  with  other 
parts. 

Synopsis. — A  condensed  inclusive  statement,  giving  a  gene- 
ral view  in  few  words. 

Synoptic. — Relating  to  a  synopsis,  or  in  synoptical  form. 

These  general  definitions  will  give  an  understanding  of  what 
follows.  A  complete  glossary,  alphabetically  arranged,  will  be 
found  at  the  close  of  this  volume. 


A  COLLECTIVE  PRODUCTION  ORDER  SYSTEM. 


Strieby  &  Foote,  Manufacturers  of  Drop  Forgings,  Newark, 
N.  J.,  employ  about  lOO  -men.  The  business  was  begun  in  1879, 
and  up  to  1883  had  no  thoroughly  formulated  system  of  cost- 
l<eeping.  In  1883  Mr.  Foote  devised  an  extremely  simple  cost- 
keeping  system  which  has  been  in  highly  satisfactory  use  by  him 
from  that  time  to  the  present. 

The  general  conception  of  this  system  is  the  use  of  a  collec- 
tive production  order  card,  authorized  by  the  general  manager, 
_,  and  issued  by  the  factory  superintendent,  which  shall  order  the 
J^  production  of  work,  and  have  recorded  on  its  face  the  various 
production  cost  items  of  material,  coal  and  labor,  with  a  record  of 
the  hours  during  which  each  particular  tool  was  employed  in  pro- 
•duction  of  the  order,  and  finally,  after  the  inspector  has  passed 
the  completed  order  to  the  shipping  department,  this  collective 
production  order  is  returned  to  the  office  and  filed  and  indexed 
according  to  the  character  of  the  piece.     Thus  a  sprocket  order 

IS  indexed  as  "Sprocket  No. ,"  not  as  "Order  No. —'^  and 

filed  with  all  the  other  sprocket  production  orders,  without  regard 
to  the  proper  number,  although  of  course,  the  latest  sprocket  order 
bears  the  highest  production  order  number  in  its  class.  This 
method  of  filing  is  adopted  to  secure  ready  class  reference  to  com- 
pleted orders. 

This  procedure  extends  the  functions  of  the  collective  pro- 
duction order  card  to  the  extreme  limit.  So  far  as  the  factory  op- 
erations are  concerned,  the  Foote  production  order  card  forms  in 
itself  a  complete  set  of  flat  cost  and  total  cost  records,  and  its 
-charges  are  made  with  a  very  small  expenditure  of  labor. 

The  separation  of  all  production  cost  particulars  of  any  one 
order  from  everything  else,  so  that  the  full  significance  of  the  cost 
items  and  total  flat-cost  of  each  individual  order  may  be  readily 
grasped  and  fully  comprehended,  is  a  prime  essential  of  effective 
cost-keeping.  The  value  of  cost-keeping  lies  in  the  possibilities 
of  comparisons  aflForded  by  its  use,  and  the  immediate  separation 
and  grouping  of  all  the  flat-cost  production  items  of  each  order 


THE  COMPLETE  COST-KEEPER.  17 

effected  by  the  use  of  the  Foote  collective  production  order,  gives 
this  readiness  for  comparison  at  the  earliest  possible  moment,  and 
in  such  form  as  to  be  easily  comprehended  as  to  totals,  or  readily 
analyzed  as  to  details. 

The  officials  of  the  Strieby  &  Foote  factory  are  as  follows: 

The  superintendent,  a  foreman  of  the  die-room,  a  foreman  of 
the  forging  shop,  and  a  foreman  of  the  finishing  room,  where  any 
machine  drilling,  tliread  cutting  or  trimming  is  done.  These  con- 
stitute the  factory  officials  in  Mr.  Foote's  system.  The  manufac- 
turing and  the  selling  departments  are  separated.  The  office 
orders  the  work  from  the  factory,  the  factor^'  delivers  the  finished 
V  ork  to  the  office,  and  the  office  disposes  of  this  product,  keeping 
a  record  of  its  transactions  in  an  ordinary  daybook,  journal  and 
ledger  set  of  books. 

In  the  general  office  there  are,  first,  the  secretary  and  trea- 
surer, who  is  also  cashier,  purchasing  agent  and  selling  agent, 
next  the  book-keeper,  and  finally  the  bill  boy  who  is  general  office 
lielper  6r  entry  clerk. 

The  shipping  clerk  has  charge  of  the  shipping-room,  finished 
stores,  and  packers,  and  is  also  chief  inspector.  He  has  under 
him  a  subordinate  inspector,  who  also  acts  as  a  packer. 

Requisitions  for  finished  product  are  made  by  the  secretary 
on  the  shipping  clerk,  in  his  capacity  as  finished  stores  keeper. 
The  shipping  clerk  enters  the  order  on  the  shipping  book,  which 
is  the  final  order  book,  and  fills  it  from  finished  stores  if  possible ; 
if  not,  then  the  shipping  clerk  enters  the  order  in  one  synoptic 
line  on  the  factory  superintendent's  work  book  and  the  super- 
intendent then  issues  a  production  order,  and  places  the  order 
in  work  in  the  factory. 

In  the  factory  Superintendent's  office,  there  is  a  Superinten- 
dent's clerk,  who  acts  as  a  cost-clerk  to  the  extent  of  making 
original  entries  on  the  collective  production  order  cards. 

This  makes  the  entire  clerical  force  employed  in  both  the 
commercial  and  factory  accounting  consist  of  four  persons,  only 
one  of  whom  is  employed  directly  in  factory  accounting. 

In  this  system  of  total  cost-finding,  charges  are  divided  into 
groups  as  follows: 

(i.)     Office  charges  including  all  clerical  labor,  expenses  of 


i8  THE  COMPLETE  COST-KEEPER. 

commercial  travellers,  and  every  outlay  connected  with  the  office 
and  selling  departments. 

(2.)  Factory  charges,  including  all  realty  considerations, 
rent,  taxes,  insurance,  as  well  as  superintendent's,  foreman's, -and 
helper's,  or  laborer's  pay,  and  all  factory  expenses  which  are  not 
actual  labor  on  output.  This  account  includes  repairs  to  ma- 
chinery, coal  for  engine  which  drives  the  shop,  all  power  expenses, 
and  every  other  item  of  outlay  other  than  that  for  the  labor  of 
workmen  engaged  directly  in  the  production  of  manufactured 
output. 

(3.)  Manufacturing  account.  This  includes  the  day  wages 
or  piece-prices  paid  to  the  workmen  engaged  in  actual  output  pro- 
duction, the  coal  used  in  heating  work,  which  varies  very  greatly 
with  different  pieces  and  is  an  important  flat-cost  item,  pickling 
and  grinding  and  finishing,  if  any  finishing  is  done. 

(4.)  Die-room  account,  including  the  wages  of  the  foreman 
die-maker  and  the  workmen  under  his  charge.  No  charge  is  made 
against  the  die-room  for  power  or  use  of  machinery. 

The  total  factory  expense  charges  are  made  up  by  adding 
the  second  and  fourth  items, — the  factory  expenses  and  the  tool 
room  expenses,-^and  this  total  expense  is  apportioned  among  the 
work-producing  tools  on  an  arbitrary  work-producing  tool-cost 
basis.  For  example,  a  thousand-pound  Billings  &  Spencer  drop 
hammer,  costing  $1,200,  is  apportioned,  as  its  share  of  daily  total 
expense,  $11.80,  this  sum  being  obtained  by  dividing  the  total  of 
the  two  expense  items  specified,  by  the  total  cost  of  the  work-pro- 
ducing tools,  thus  making  each  work-producing  tool  bear  a  part 
proportioned  to  its  cost.  In  case  a  work-producing  tool  is  sub- 
ject to  an  unusually  large  charge  for  breakage  and  repairs,  its 
ad  valorem  expense  percentage  is  advanced  arbitrarily,  and  that  of 
some  less  hardly-worked  tool  is  diminished  to  make  totals  balance. 

While  this  is  not  the  only  case  within  the  writer's  knowledge 
where  a  direct  tool  expense  charge  is  made,  many  factory  accoun- 
tants will  doubt  the  propriety  of  this  method  of  expense  appor- 
tionment. 

Mr.  Foote's  argument  in  support  of  his  practice  is  that  each 
work-producing  tool  in  a  factory  has  a  certain  daily,  weekly,  or 
yearly  expense  charge  standing  against  it,  which  it  must  earn  to 


THE  COMPLETE  COST-KEEPER.  19 

keep  the  establishment  out  of  debt.  If  a  tool  is  idle,  it  increases 
its  indebtedness  by  every  hour  of  such  idleness,  and  this  indebt- 
edness is  cancelled  or  paid  by  the  profits  gained  from  work  pro- 
duced by  other  tools  which  are  earning  money  while  the  idler  is 
eating  his  head  oflf. 

There  is  another  point  of  view  of  this  matter  of  idle  tools, 
from  which  the  loss  entailed  is  by  no  means  so  important  as  in 
Mr.  Foote's  estimate.  Suppose  that  the  hammer  stands  still ;  it 
costs  $1,200.  Its  interest  cost  per  day  to  the  shop  is  therefore, 
if  the  year  be  held  to  consist  of  250  working  days,  less  than  one 
half  dollar;  an  idle  hammer  requires  no  power,  no  coal,  no  ham- 
merman; it  is  in  no  one's  way,  and  it  is  costing  nothing  worth 
talking  about.  Such  would  be  the  average  accountant's  statement 
of  the  case  of  the  idle  1,000-pound  hammer. 

In  reply  to  this  Mr.  Foote  says  that  the  idle  tool  costs  the 
shop  every  day  all  its  proper  apportionment  of  the  shop  expense, 
which  would  be  its  apportionate  earnings  if  in  operation,  and 
that,  instead  of  losing  its  owners  a  paltry  half-dollar  per  day,  the 
idle  1, 000- pound  hammer  costs  the  shop  20  or  more  times  that 
sum.  Undoubtedly  an  expense  account  apportionment  can  well 
be  made  on  an  individual  tool-earning  basis.  Mr.  Foote  believes 
a  tool  cost  basis  division  of  the  expense  account  to  involve  less 
inaccuracy  than  the  common  method  of  using  the  tot^.l  labor  hours 
for  the  expense  account  divisor,  and  the  satisfactory  results  ob- 
tained by  the  use  of  this  method  of  expense  apportionment  in 
his  own  practice,  would  seem  to  justify  him  in  this  opinion. 
Where  the  expense  apportionment  is  made  upon  the  total  hours 
of  labor  of  some  past  period,  it  is  very  rarely  the  case  that  this  ap- 
portionment is  absolutely  correct  for  any  other  period  of  time. 
In  point  of  fact  a  labor  hour  apportionment  of  the  expense  account 
can  only  be  absolutely  correct,  when  the  factory  is  operated  under 
identical  conditions  at  widely  separated  periods  of  time. 

As  with  every  drop  forging  shop,  the  Strieby  &  Foote  tool- 
room account  is  very  large  in  proportion  to  the  productive  labor 
total.  All  the  tool-room  charges  are  carried  directly  to  the  expense 
account  after  reduction  by  the  deduction  of  amounts  paid  by  cus- 
tomers directly  for  die-making.  The  customer  as  a  matter  of 
course  pays  all  these  expenses,  generally,  however,  indirectly,  in 


20  THE  COMPLETE  COST-KEEPER. 

the  form  of  an  addition  to  the  piece-price  of  the  work  order.  In 
some  cases  of  small  orders,  the  customer  pays  for  the  dies  directly, 
the  charge  being  usually  about  equal  to  the  flat-cost  of  the  tools 
required.  Where  the  order  is  of  sufficient  magnitude  to  cover  the 
life  of  the  set  of  dies  which  produce  it,  no  charge  is  made  for  the 
dies,  nor  is  any  charge  made  for  die  repairs  for  work  in  regular 
production. 

The  tool-room  supplies,  files,  oil,  drills,  waste,  emery  cloth, 
and  so  on  to  the  rough  stores  which  for  the  tool-room  consist  of 
dimension  forgings  of  tool-steel,  all  go  with  the  other  tool-room 
charges  into  the  expense  account.  Whatever  returns  are  made  by 
the  tool-room,  in  the  way  of  dies  paid  for  directly  by  the  custom- 
ers, are  credited  to  the  die-room  and  diminish  by  so  much  the 
die-room  charge  to  expense. 

The  manufacturing  stores  of  the  Strieby  &  Foote  establish- 
ment consist  wholly  of  steel  bars  of  various  sizes,  which  are  stored 
by  being  racked  under  cover  in  the  yard.  These  stores  are  in 
charge  of  a  rough-stores  keeper,  -whose  duties  are  to  rack  the  stock 
as  received  by  the  factory,  and  upon  the  receipt  of  a  sub-produc- 
tion order  from  the  superintendent,  as  hereafter  described,  to  cut 
bars  of  suitable  dimensions  to  the  proper  lengths  for  heating,  and 
deliver  them  to  the  hammerman  designated,  reoorting  the  weights 
dimensions  and  grade  of  bars  so  delivered  to  the  superintendent. 
This  stores-keeper's  labor  is  classed  as  non-productive  and  goes 
to  expense. 

About  90  per  cent  of  the  productive  labor  in  this  establish- 
ment is  paid  at  piece  rates.  This  large  proportion  of  piece-rate 
payment  is  probably  the  cause  of  what  may  be  considered  a  rather 
primitive  manner  of  dealing  with  workmen's  time  in  this  factory. 
The  men  are  not  checked  into  or  out  of  the  shop.  Each  workman 
carries  a  time-book  of  his  own,  in  which  he  enters  his  hours  of 
labor  charged  against  the  jobs  on  which  he  was  employed  through 
the  day.  At  the  commencement  of  working  hours,  each  fore- 
man checks  up  those  workmen  who  are  present,  in  his  foreman's 
time-book.  If  a  man  is  not  on  time  the  foreman  makes  note  of 
the  shortage  when  he  appears.  Neither  the  workman's  individual 
time-book,  nor  the  foreman's  time-book  are  used  in  making  up 
the  productive  workmen's  pay  roll.    The  productive  labor  pay  roll 


THE  COMPLETE  COST-KEEPER. 


21 


totals  are  made  exclusively  from  the  entries  on  the  "production 
order"  cards.  This  makes  it  impossible  for  the  shop  to  pay  for 
any  productive  workman's  time  when  no  service  has  been  ren- 
dered. 

After  the  workman's  time-book  has  been  found  to  agree  with 
the  foreman's  time-book  in  total  hours  it  is  assumed  to  be  correct, 
and  the  workman's  order  time  charges  are  then  transferred  to  the 
appropriate  spaces  on  the  production  order  card  by  the  superic- 
.tendent's  clerk. 

Unproductive  labor  is  noted  by  the  foreman  as  performed  on 
unproductive  labor  cards,  provided  for  that  purpose. 


Date,  March  26,  i8g8. 

(   No. 
Article,   Unproductive  Slip  week  ending —                                          (  33^^- 

No. 

OPERATION. 

No.  of 
Hours. 

Drop. 

Rate. 

OPERATOR. 

Week 
Ending. 

0.  / 

S. 

Repairs  Drop  H. 

Racking  Steel 
( Rebendin^  Steps 
{For  Packing 
Room  Helper 

C, 
Inspector. 

10 

2 
2 

2S 

30 

JO 

A.  Smith. 
S.  Jones. 

S.  Jones. 

B.  Jones. 

%l.2S 
2.50 

.bo 
.20 

%4.55 

UNFRODUCTIVK    LABOR    CARD. 


The  Strieby  &  Foote  estimate  on  proposed  work  involves, 
first,  a  reference  to  the  sample  boards,  which  are  conveniently 
hinged  so  as  to  shut  up  like  doors,  and  thus  give  a  great  display 
surface  without  taking  up  much  floor-room,  and  which,  at  the 
present  stage  of  the  existence  of  the  company,  contain  so  large 
a  number  and  variety  of  samples  of  pieces  produced  as  to  make  it 
unlikely  that  a  model  will  be  submitted  for  estimate  which  has 
not  an  approximation  in  work  done  before.  Each  piece  of  work 
made  has  its  shop  number  stamped  on  it,  and  painted  in  conspicu- 


22 


THE  COMPLETE  COST-KEEPER. 


ous  characters  on  the  board  where  it  hangs,  and  is  indexed  so  that 
the  production  order  on  which  the  piece  was  made  can  very  readi- 
ly be  found.  With  the  production  order  for  the  similar  piece  in 
hand,  the  estimate  can  be  given  instantly,  as  the  safe  piece-price 
of  the  manufactured  article  is  given  on  that  production  order. 
Should  there  be  material  variations  between  a  submitted  model 
and  the  nearest  approach  to  it  found  on  the  sample  boards,  the 
variation  would,  of  course,  be  noticed  by  shading  the  estimate. 
But  it  is  no  exaggeration  whatever  to  say  that  by  aid  of  this  col- 
lective production  order  record  of  past  production,  the  manufac- 
turer can  tell  within  a  few  mills  of  what  the  actual  manufacturing 
cost  of  any  model  of  drop-forging  within  the  capacity  of  his  ham- 
mers will  be. 

The  Strieby  &  Foote  production  order  is  shown  below.  This 
is  "collective^'  in  the  widest  sense  of  the  term.  It  gives  all  shop 
particulars  of  manufacture,  the  coal-cost,  stock-cost,  labor-cost, 
tool-cost,  and  the  total  cost. 


Date,  March  20,  i8g8. 
Article,  1000  Sprockets,  No.  281^. 

(  No. 

No. 

OPERATION. 

No.  of 
Hours. 

Drop. 

Rate. 

OPERATOR. 

1000 
1000 
1000 

Block 
Blank 
Finished 

9 
10 
20 

H 

40 
80 

A.  Smith. 

'r  cent. 

00). 

4.00 
J. 00 
8.00 

3.T2 
40.00 
60.12 
46.02 

J.50 
.60 

Punch 

Inspected  S.  J. 

1,000    0.  K. 

N.G. 

39  h 
2000  It 

39  h 
I 

2h 

ours  at  8c. 
's.  Steel  at  2c. 

ours  at  1. 18 
^ress         .75 
ours  at    .JO 

40  pi 

108.24 
41-29 

1,000 

(C 

an  sell 

at  is.i 

6  per  I 

^51.53 

PRODUCTION    ORDER. 

This  card  form  fs  printed  on  heavy  inanila  j;aper,  and  delivered  to  the  superintendent  made 

up  in  pads,  and  is  numbered  in  numericul  sequence  as  filled  out  and  vivitied.    Tlie 

size  is  7%  inches  by  4  3-16  inclies.    The  order  is  shown  as  compleiely  filled. 

The  production-order  blanks   are   consecutively   numbered, 
and  are  furnished  for  use  made  up  in  pads.    They  are  kept  by  the 


THE  COMPLETE  COST-KEEPER. 


23 


general  Superintendent  and  are  issued  only  by  him,  it  not  being 
deemed  advisable  to  place  an  act  of  such  importance  in  the  power 
of  any  other  subordinate. 

Two  books  are  kept  in  the  superintendent's  room  by  the  su- 
perintendent's clerk.  One  of  these  is  a  rough  stores  memorandum 
book,  narrow  ledger  form,  kept  with  credit  and  debit  sides  re- 
versed, stock  received  being  credited,  and  stock  delivered  being 
charged,  and  the  balance  on  any  page  showing  the  amount  of 
some  particular  size  and  shape  of  bars  on  hand.  Thus  one  dou- 
ble-page is  devoted,  say  to  a  record  of  half-inch  round  bars 
received,  and  delivered  by  the  stores-keeper  from  the  rough  stores 
to  the  factor)^  on  the  superintendent's  sub-production  order,  which 
is  merely  a  memorandum  on  a  blank  manila  slip  of  the  number  of 
pieces  ajid  shop  symbol  of  the  production  order.  Another  page 
keeps  a  similar  account  of  seven- sixteenth  round  bars,  another  of 
half -inch  square  bars,  and  so  on. 


SPROCKETS. 

1898. 

stock. 

Weijflit. 

Mar. 

20.         1000  No.  2813,  n  d. 

f>xy^ 

2000 

' 

• 

INDEX   BOOK. 

This  illustration  shows  the  page  form  of  the  Index  Book,  with  a  one-line  synoptic  entry,  on 

the  "Sprocket"  page.    This  line  reads  in  lull,  "The  factory  is   hereby  ordered  to 

make  1,000  more  or  less)  sprockets,  shop  symbol  No.  2,815,  using  the  new  die 

(n.  d  )  which  is  now  ready.    Ttie  stock  is  6  inches  by  Y^  inches,  and 

the  total  weight  of  stock  for  the  1,000  pieces  is  2,000  pounds. 

Date,  March  20,  1898.    The  abbreviation   "  a.  d."  is 

used  for  "  altered  die." 


24  THE  COMPLETE  COST-KEEPER. 

This  rough  stores  memorandum  ledger  gives  information  as 
to  the  need  for  ordering  stock,  all  sizes  in  common  use  being  kept 
on  hand  in  considerable  excess  of  anticipated  immediate  factory 
demand,  as  about  three  weeks  must  elapse  between  the  placing 
and  receiving  an  order  for  bars. 

The  other  book  kept  in  the  superintendent's  room  is  called 
the  "Index  Book,''  and  has  a  cut  index  margin  filled  with  "group" 
titles,  as  "Sprockets,"  "Cranks,"  and  so  on.  This  book  is  also 
indexed  alphabetically,  so  that  articles  outside  of  the  conventional 
groups  may  find  a  place.  A  completed  work  order  can  be  readily 
traced  and  located  by  reference  to  this  index  book,  in  which  each 
production  order  has  a  single  line  synoptic  entry  as  soon  as  re- 
ceived in  the  superintendent's  office.  The  Index  Book,  as  used  by 
Strieby  &  Foote  is  6  inches  wide,  by  13  inches  high,  300  pages, 
with  a  cut  marg^in  index. 


DROP  L, 

1000  SPROCKET  2815. 

BLANK. 

1st.  B. 

» 

SUB-PROUUCTION    ORDER. 

Sub-proJuction  first  operation  ma'e  by  siiperiiit'-iidriit  to  the  hatnmrr  room.    Thi  -  order  ia 

pencilled  on  blank  ni.inila  card.     Same  pi.e  as  the  printed  pioduciion  or  er  form, 

and  is  delivered  bv  tlie  suj^erintt-ndent  lo  tlier>ui;li  stores-keeper,  who  shears 

the  8t(>rk  to  fill  theorder,  a   d  tln-n  delixers  the  stuck  and  order  both  to 

the  foreman  of  the  l.ammer  room.     A  stmilarpencilled  card  is 

also  placed  in  tin;  rack  of  mncliii.e  tool  work  cards, 

kept  in  ihe  m»naj;er's  room.     Thcr'e  are  both 

orders  to  "  bla'ik,"  lo  p-rfonn  the  first 

operation  on  the  i  oco  sprockets 

specified 


THE  COMPLETE  COST-KEEPER.  25 


DROP  L.- 


1000  SPROCKETS  2815. 

FINISH. 


3rd  D. 


SECOND    PRODUCTION    ORDER. 

Pencilled  second  operation  order,  made  on  a  blank  manila  card  and  kept  in  rack  in  superin- 
tendent's room,  to  show  what  orders  for  work  are  before  "  Drop  L."    The  foreman  of 
the  hammer  room,  having  received  the  rough  stock  and  the  pencilled  produc- 
tion  order  for  the  first  operation,  is,  by  shop  custom,  also  ordered  to 
perform  the  second  operation  of  "finishing"  the  previously 
"blanked"   sprockets  on  the    same    tool,   without   a 
separate  detail  order. 

Production  orders  when  issued  by  the  superintendent's  office 
do  not  have  the  "number  of  pieces"  blank  filled,  but  are  accom- 
panied by  a  pencil  memorandum  of  the  number  of  pieces  ordered ; 
the  amount  of  stock  needful  for  the  order  is  then  noted  on  a  plain 
slip  and  sent  by  the  superintendent  to  the  rough  stores-keeper, 
and  when  the  notification  of  the  delivery  of  the  bars  to  the  factory 
is  received  by  the  superintendent  from  the  stores-keeper  then  the 
number  of  pieces  for  which  the  material  is  known  to  be  in  hand  is 
filled  in  on  the  production  order;  this  nimiber  entry  vitalizes  the 
order  and  places  it  in  work.  The  cause  for  this  procedure  lies  in 
the  possibility  that  there  is  not  enough  material  in  the  rough 
stores  to  produce  the  entire  order ;  in  this  case  a  part  of  the  order 
may  be  placed  in  production,  and  the  purchasing  agent  is  notified 
of  the  requirements  of  the  situation,  and  when  more  bars  are  re- 
ceived a  supplementary  production  order  is  issued  to  make  up  the 


26  THE  COMPLETE  COST-KEEPER. 

deficit  in  the  original,  or  the  production  may  be  wholly  delayed 
until  material  is  received  to  complete  the  entire  order. 


PRESS  A. 

1000  SPROCKETS  2815. 

PUNCH. 

2nd  C. 

FOUR. 

• 

THIRD   PRODUCTION    ORDER. 

Pencilled  third  operation  order,  made  on  a  blank  manila  card,  and  kept  in  machine  tool  rack 
in  superintendent's  room  to  show  what  work  is  before  "  Press  A." 

Material  is  delivered  by  the  stores-keeper  to  the  foreman  of 
the  hammer-room  in  three  forms;  sheared  to  length  for  a  single 
forging,  sheared  to  double  length  for  two  pieces  of  forging,  or 
sheared  into  heating  lengths.  In  consequence  of  this,  the  exact 
number  of  pieces  made  on  the  order  cannot  be  known  until  after 
the  stock  is  sheared  and  counted,  or  in  case  of  bars  cut  to  heating 
length,  until  after  the  first  hammer  operation  has  been  performed. 
To  avoid  changing  the  number  of  pieces  on  the  production  order 
the  "number  of  pieces"  space  on  the  production  order  card  is  not 
filled  until  a  certain  count  is  obtained,  either  by  the  stores-keeper's 
count  of  sheared  stock  delivered  to  the  hammer  shop  foreman,  or 
from  a  count  of  pieces  passing  through  the  first  operation. 

The  mechanical  aids  employed  by  Strieby  &  Foote  in  their 
factory  accounting  are  few,  but  of  much  interest.  The  first  is  an 
ingenious  arrangement  of  swinging  sample  boards,  whereby  a 
large  area  of  display  surface  is  made  to  fold  into  small  space, 
and  yet  is  all  of  it  very  readily  accessible.    This  permits  the  plac- 


THE  COMPLETE  COST-KEEPER. 


n 


Fig.  I.     Strieby  &  Foote's  Sample  Boards. 

Five  boards  are  hinged  to  one  axis  by  means  of  ci-anked  hinges,  the  boards  being  of  slightiy 
different  lengths,  so  that  the  hinges  will  pass  each  other. 

ing  of  the  display  boards  in  the  manager's  office,  close  to  his  desk, 
so  that  he  can  instantly  see  and  handle  any  piece  of  work  ever 
produced  by  the  factory. 

The  illustrations  fully  exhibit  the  ingenious  method  of  hing- 
ing these  boards,  so  that  several  of  them  can  swing  independently 
on  the  same  axis  without  interference,  which  is  a  matter  requir- 
ing a  considerable  exercise  of  invention,  as  the  boards  are  large 
and  heavy,  and  must  be  supported  in  a  very  substantial  manner. 

These  sample  boards  are  26  inches  wide  by  about  6  feet  long, 
as  shown  in  Figs,  i,  2,  3,  and  4.  The  boards  are  made  of  pine, 
tongued  and  grooved  to  wide  end-pieces,  as  clearly  shown  in  Fig. 
2,  and  varnished  with  shellac.    The  hinges  are  screwed  to  the  wids 


28 


THE  COMPLETE  COST-KEEPER. 


of  the  boards,  and  are  cranked,  and  the  top  hinges  turn  on  a  long 
hinge  pin  on  which  they  are  located  one  above  another,  as  shown 
in  Figs.  I  and  2.  This  vertical  hinge  pin  is  supported  at  the  top 
end  only ;  the  top  end  is  secured  by  a  shoulder  and  nut  to  a 
wrought-iron  top  V-brace  support,  see  Fig.  2,  projecting  horizon- 
tally from  the  office  partition,  to  which  the  feet  of  the  V-brace  are 
screwed.  The  bottom  hinges,  see  Fig.  3,  are  somewhat  different 
in  form ;  the  hinges  are  cranked,  same  as  the  corresponding  hinges 
over  head,  and  are  screwed  to  the  under  edges  of  the  doors,  all 
in  a  manner  similar  to  the  top  hinges,  but  the  lower  hinge-eyes  are 
made  of  differing  diameters,  and  drop  down  on  supporting  shoul- 
ders formed  on  the  bottom  hinge  pin,  which  is  made  in  different 
diameter  sections,  each  of  suitable  length,  and  secured  to  a  cast- 


FiG.  2.     Top  Hinges  of  Sample  Boards. 


THE  COMPLETE  COST-KEEPER. 


99 


Fig.  3.     Bottom  Hinges  of  Sample  Boards. 


iron  sole-plate,  which  is  bolted  to  the  floor.  All  of  the  hinge  work 
is  made  of  wrought  steel  and  polished.  Five  boards  are  hinged 
in  one  bank,  on  one  axis,  and  there  are  three  of  these  banks,  giv- 
ing fifteen  of  these  large  boards,  making  a  display  surface  in  all 
of  over  250  square  feet,  although  by  virtue  of  this  highly  ingeni- 
ous method  of  banking  and  hinging  these  fifteen  boards  are  made 
to  take  up  only  a  very  little  space  in  the  manager's  office,  which 
is  by  no  means  a  large  apartment.  Distance  blocks  are  placed  at 
the  edges  of  the  boards,  to  make  them  close  without  the  samples 
on  two  facing  boards  touching  each  other.  These  boards  are  all 
hinged  close  to  the  wall,  one  bank  at  the  right  of  and  close  to  the 
manager's  desk,  then  another  bank  in  the  comer,  and  the  third 
bank  close  to  the  second  bank  against  the  office  wall  at  right  an- 
gles to  the  manager's  desk.  This  novel  arrangement  of  sample 
boards  was  invented  by  Mr.  Foote.  It  is  a  great  convenience,  and 
effects  great  savings  of  space  and  labor,  and  is  not  unsightly. 

The  other  mechanical  aids  consists  of  two  racks  of  pigeon 


30  .THE  COMPLETE  COST-KEEPER. 


Fig.  4.     Sample  Boards  Open  to  Display  Samples. 

holes,  both  placed  in  the  superintendent's  office;  one  of  these  is 
long  enough  to  contain  24  compartments,  which  embraces  the 
entire  range  of  the  factory  production  classes.  When^a  produc- 
tion order  is  vivified  by  filling  in  the  number  of  pieces  after  the 
stores-keeper  has  delivered  the  bars  to  the  hammerman,  it  is 
placed  on  one  of  its  long  edges  in  its  proper  class  compartment, 
and  remains  there  until  the  work  is  completed,  ready  for  instant 
access,  either  for  purposes  of  reference,  or  to  receive  the  labor 
charges  transferred  to  these  collective  production  orders  from 
the  workmen's  time-books  by  the  superintendent's  clerk,  or  cost- 
keeper. 

The  other  rack  of  pigeon  holes  is  long  enough  to  contain  in 
one  row  the  entire  list  of  production    tools,    hammers,    presses, 


THE  COMPLETE  COST-KEEPER. 


31 


Fig.  5.     Rack  of  Production-Order  Pigeon  Holes  on  Top  of 
Superintendent's  Desk. 

drills,  and  so  on,  which  the  factory  has  ready  for  operation, 
alphabetically  designated.  When  a  production  order  is  vivified, 
the  superintendent  decides  upon  the  tools  which  are  to  be  used 
in  making  the  work  and  fills  out  plain  card  blanks,  same  size  as 
the  production  order,  with  the  number  of  pieces  and  piece  symbol, 
one  card  for  each  machine  operation  to  be  performed,  and  then 
racks  these  cards  on  their  long  edges  in  the  pigeon-holes  bearing 
the  alphabetical  designation  of  each  tool  selected. 

This  is  a  very  convenient  system  of  keeping  a  record  of  work 
in  progress  and  in  prospect  for  each  productive  machine.  With- 
out touching  the  cards  in  the  machine  rack,  the  superintendent 
can  tell  by  a  mere  glance  how  much  work  there  is  before  any  ma- 
chine tool  in  the  factor)^  Something  of  this  same  nature  and 
scope  appears  in  several  of  the  factory  systems  described,  but 
nothing  could  well  be  cheaper,  or  more  effective,  or  operated  with 
less  labor,  than  these  simple  pigeon-holes  and  pencilled  manila 
cards.  When  an  order  operation  has  been  worked  by  a  certain 
machine,  the  card  indicating  that  operation  is  simply  taken  from 


32 


THE  COMPLETE  COST-KEEPER. 


Fig.  6.    Rack  of  Pigeon  Holes  Containing  Individual  Tool  Work 

Slips,  in  Superintendent's  Room. 
the  pigeon  hole  and  thrown  into  the  waste  basket,  after  ascertain- 
ing that  the  proper  labor  charge  has  been  made  on  the  collective 
production  order. 

When  a  production  order  is  filled,  the  card  and  work  go  to 
the  inspector,  and  thence  to  the  finished-stores  in  charge  of  the 
shipping  clerk,  the  production  order  going  to  the  president,  who 
is  also  revisionary  cost-clerk.  Mr.  Foote  devotes  two  hours  daily 
to  the  production  orders,  because  these  cards  and  the  information 
they  contain  bring  him  into  the  closest  possible  touch  with  every 
department  of  the  works.  It  is  the  work  of  but  an  instant  to  com- 
pare the  per-ioo  selling  cost,  or  the  factory  cost,  or  stock  cost,  or 
coal  cost,  or  time  cost  in  hours  required  for  production  of  any 
one  order,  with  that  of  another  order  in  the  same  generic  class, 
and  any  notable  discrepancy  between  the  cost  items  of  two  closely 
related  orders,  is  at  once  made  a  subject  for  investigation. 

Thus  this  simple  collective  production  order  secures  to  Mr. 
Foote  a  permanent  and  accessible  record  of  all  important  particu- 
lars of  every  piece  of  work  made  in  this  drop-forging  shop.    For 


THE  COMPLETE  COST-KEEPER.  33 

his  personal  use  Mr.  Foote  makes  up  a  little  book  of  per- 100 
prices,  but,  so  far  as  the  permanent  shop  record  is  concerned,  the 
collective  production  order  holds  everything,  and  its  charges  are 
not  transferred  to  any  shop-book  of  any  kind. 

It  will  be  observed  that  Mr.  Foote's  system  separates  the  total 
shop  cost  from  the  office  charges  entirely.  His  conception  is  that 
the  office  stands  in  the  position  of  a  merchant  dealing  in  finished 
products  only.  The  finished  product  costs  the  office  so  much,  that 
is  to  say,  the  total  factory  cost.  Then  to  this  factory  cost  the 
office  adds  its  own  expenses  and  the  selling  expenses  and  its  pro- 
fit as  a  dealer,  which  gives  the  total  cost,  or  selling  price,  viewing 
the  office  and  factory  as  parts  of  the  same  unit. 

The  Strieby  &  Foote  production  order  card  bears,  first,  the 
date  and  order  number,  and  name  and  shop  number  of  the  piece. 
Then  comes  a  line  of  column-headings,  which  explains  itself. 
The  hammer  work,  in  the  example  shown,  was  at  piece  rates,  40 
cents  per  100  for  blocking  out,  50  cents  for  blanking,  and  80  cents 
for  finishing.  The  coal  cost  was  8  cents  per  hour.  Two  thousand 
pounds  of  steel  were  used,  charged  at  2  cents,  which  was  an  ad- 
vance of  about  7  1-2  per  cent,  upon  cost  at  the  factory  door.  Thi^^ 
makes  a  total  stock,  labor,  and  coal  cost  of  $60.12  when  the  ham- 
merman was  done.  Then  the  per-hour  share  of  shop  expense  foi 
the  tool  drop  hammer  "H,"  $1.18  per  hour  for  39  hours,  equal  to 
$46.02,  is  charged.  There  is  a  hole  punched  in  each  sprocket  by 
B.  Smith,  who  did  the  work  in  two  hours,  at  75  cents  per  hour,  on 
a  press  which  had  a  30-cents  per  hour  charge.  These  items  bring 
the  total  shop  cost  up  to  $108.24.  Then  the  office  charge  of  40 
per  cent.,  covering  office  and  selling  expenses,  is  added,  making 
the  total  cost  for  the  1,000  pieces  $151.53.  The  middle  of  the 
ticket  bears  the  memorandum  based  on  this  1,000  piece  cost:  ''Can 
sell  for  $15.16  per  100."  The  left-hand  comer  bears  the  inspect 
tors  check  of  "1,000  O.  K.  No  N.  G." 

The  inventory  is  made  yearly  in  the  usual  manner  by  actual 
count  and  survey.  Nothing  in  the  factory  accounting  gives  any 
information  which  would  enable  an  inventory  to  be  made  from  its 
records. 

Synopsis. — To  bring  the  principal  features  of  the  foregoing 
story  of  the  Strieby    &    Foote  single-printed  form    cost-keeping 


34  THE  COMPLETE  COST-KEEPER. 

system  clearly  and  succinctly  before  the  reader,  the  following  re- 
capitulation in  brief  is  given. 

The  manufacturing  is  divided  from  the  selling. 

The  manufacturing  officials  are  the  Secretary  and  Treasurer, 
who  also  acts  as  Cashier,  Purchasing  Agent  and  Selling  Agent, 
a  Book-keeper,  and  an  Entry  Clerk,  three  persons  in  all. 

The  shipping  clerk,  in  charge  of  the  packing  and  shipping 
room  and  the  packers,  and  of  the  finished  stores,  also  acts  as  final 
inspector,  and  has  under  him  a  subordinate  inspector,  who  helps 
in  packing.  The  shipping  clerk  keeps  the  order  book,  fills  orders 
from  finished  stores,  and  makes  requisitions  on  the  factory  for 
production  by  one-line  entries  in  the  factory  superintendent's 
work  book.  When  a  factory  production  order  is  filled  the  ship- 
ping clerk  receives  the  finished  product,  and  the  production  order 
from  the  factory  superintendent,  certifies  the  inspection  and  orders 
shipment,  sending  the  completed  production  order  to  the  general 
manager. 

The  factory  officers  are,  first,  the  factory  superintendent,  who 
has  full  authority  over  the  entire  factory  including  the  tool-mak- 
ing department.  The  superintendent  has  a  clerk  who  is  the  nomi- 
nalcost  clerk,  and  makes  entries  of  production  cost  items  on  the 
collective  production  order  cards,  the  items  being  taken  from  the 
individual  workmen's  time-books  after  they  have  been  made  to 
agree  with  the  departmental  foreman's  workman's  time  record. 

In  the  working  departments  there  are  a  foreman  of  the  die- 
room  who  receives  and  executes  production  orders  issued  by  the 
superintendent,  and  also  keeps  a  workman's  time  sheet.  Each 
workman  keeps  an  individual  time  book  in  which  he  enters  his 
total  time,  and  also  his  divided  time  charges  against  individual 
production  orders.  The  total  individual  workman's  time  on  his 
own  book  is  made  to  agree  with  his  foreman's  time  sheet,  and 
when  so  adjusted  the  workman's  time  book  becomes  the  basis  of 
the  item  charges  made  by  the  superintendent's  clerk  on  the  col- 
lective production  orders  in  work,  kept  in  the  superintendent's 
order  rack,  as  described. 

There  is  also  a  foreman  of  the  forging  room,  who  receives 
and  delivers  to  his  hammerman  the  raw  matreial  sheared  and  de- 
livered to  the  foreman  of  the  forging  room  by  the  rough  stores- 


THE  COMPLETE  COST-KEEPER.  '         35 

keeper,  as  previously  mentioned.  The  foreman  of  the  forging 
room  keeps  a  time  sheet,  and  each  hammerman  keeps  an  indivi- 
dual time  book,  all  as  in  the  die  room. 

The  rough  stores-keeper  piles  the  stock  bars  received  under 
cover,  and  shears  and  delivers  them  on  orders  from  the  superin- 
tendent, delivering  the  order  to  the  hammer  foreman  with  the 
stock,  the  order  and  stock  together  constituting  a  sub-production 
order  on  the  hammer  room,  recognized  by  the  foreman.  The 
stores-keeper  reports  particulars  of  stock  delivery  back  to  the  su- 
perintendent's office. 

Lastly,  there  is  a  foreman  of  the  finishing  room,  who  finishes 
work  as  ordered  by  the  superintendent,  and  keeps  a  time  sheet, 
with  which  his  workmen's  individually  kept  time  books  are  made 
to  agree,  as  before. 

The  tool-makers  pay  roll,  same  as  that  of  all  other  workmen, 
is  made  from  production  order  charges. 

Unproductive  labor  is  charged  on  unproductive  labor  cards, 
a  reproduction  of  one  of  which  is  given. 

The  books  kept  are,  in  the  office,  a  set  of  ordinary  commer- 
cial books. 

In  the  shipping  room,  the  order  book,  kept  by  the  shipping 
clerk. 

In  the  superintendent's  room,  the  rough  stores  ledger,  and 
the  index  book,  kept  by  the  superintendent's  clerk. 

In  each  of  the  departments  a  foreman's  time-book,  kept  by 
the  foreman. 

By  each  workman,  an  individual  time-book. 

The  only  printed  card  form  is  the  production  order.  The 
sub-production  orders,  issued  by  the  superintendent  to  the  ham- 
mer room  and  finishing  room,  are  pencilled  on  manila  blanks, 
same  size  as  the  printed  production  order  form,  and  are  destroyed 
when  the  sub-production  order  is  filled. 

Manifestly  this  single  collective  production  order  card  form, 
gives  the  simplest  possible  system  of  factory  accounting  in  which 
printed  form.s  are  used,  since  only  the  one  solitary  printed  card 
form  is  used;  less  printed  forms  would  be  none  at  all. 

The  results  gained  by  the  use  of  this  simplest  system,  al- 
though lirnited  in  detail,  yet  contain  all  cost  items  essential  to  the 


36  THE  COMPLETE  COST-KEEPER, 

successful  conducting  of  a  manufacturing  business,  and  enable 
the  manager  to  make  those  comparisons  between  the  separate 
items  of  flat  cost  of  successive  similar  or  related  orders,  which  are 
a  prime  requisite  of  successful  shop  management.  Probably  no- 
thing simpler  could  be  devised  which  would  give  an  equally  full 
record,  as  this  record  contains  no  item  which  can  be  omitted. 

As  to  the  pencilled  manila  slips  emanating  from  the  superin- 
tendent's office  to  the  rough  stores-keeper,  the  tool-room,  and  the 
production  department  foreman,  they  are  really  sub-production 
orders,  and  in  more  elaborate  cost  finding  systems  all  sub-produc- 
tion orders  are  preserved  for  possible  future  reference.  The  sys- 
tem, however,  loses  no  essential  advantage  by  the  destruction  of 
these  inexpensive  pencilled  manila  cards,  since  the  resultant  ex- 
penditures produced  by  each  are  transferred  in  separated  items  to 
the  collective  production  order  card. 

Drop  forgings  constitute  a  comparatively  simple  manufac- 
ture, and  hence  the  production  order  card  form  carries  but  few 
divisions ;  the  number  of  these  divisions  might  be  materially  in- 
creased, thus  providing  for  a  more  extended  variety  detail  pro- 
duction operations,  without  increasing  the  area  of  the  card  form 
to  inconvenient  dimensions. 

The  actual  percentage  of  flat-cost  due  to  the  working  of  this 
system  is  extremely  small,  since  there  is  no  person  employed  who 
would  be  thrown  out  of  employment  if  the  cost-finding  was  aban- 
doned. The  superintendent's  clerk  is  nominally  the  cost-keeper, 
but  a  large  part  of  his  time  is  devoted  to  other  duties,  and  he 
would  be  retained  if  no  cost  keeping  was  done.  As  for  the  two 
hours  daily  which  Mr.  Foote  himself  gives  to  the  production 
order  cards,  he  would  have  to  give  very  much  more  time  to  obtain- 
ing the  information  needful  to  the  intelligent  direction  of  the 
works,  if  he  did  not  have  the  story  told  by  the  card  entries  to 
guide  him.  From  all  this  it  is  dear  that  the  system,  as  detailed, 
costs  but  a  very  small  part  of  the  savings  which  are  effected  by 
its  use  in  the  factory,  besides  supplying  the  manager  with  infor- 
mation which  is  really  indispensable. 


A  SIMPLE  SYSTEM   FOR   DUPLICATE   WORK. 


The  Hyatt  Roller  Bearing  Company  employs  about  fifty 
workmen  in  three  departments,  the  drawing  room,  pattern  shop 
and  machine  shop. 

The  Hyatt  roller  bearings  are  made  in  a  vast  variety  of  dia- 
meters and  shapes,  adapting  them  for  use  in  machines  of  almost 
every  description.  The  bearing  consists  of  soft  steel  rollers  made 
of  coiled  flat-steel  bars,  which  travel  round  and  round  in  a  sheet- 
steel  shell  made  in  two  pieces  with  angular  margins  of  junction, 
confined  in  cast-iron  bearings  or  hanger  boxes  of  suitable  exterior 
forms.  Half  of  the  rollers  in  each  bearing  are  cased  in  brass  cages, 
thus  ensuring  their  own  parallelism,  and  also  the  parallel  move- 
ment of  the  remainder  of  the  rollers,  which  run  free  in  the  journal 
box. 

When  Mr.  T.  J.  Tellefsen  undertook  the  management  of  the 
establishment,  there  was  nowhere  recorded  any  accurate  infor- 
mation as  to  the  cost  of  its  products.  Bearings  of  certain  dimen- 
sions were  said  to  cost  certain  amounts,and  were  sold  at  prices 
based  on  these  asserted  costs,  which  were,  in  many  instan- 
ces, it  is  almost  needless  to  say,  very  far  indeed  from  even  toler- 
ably close  approximations  to  the  actual  figures,  as  obtained  by  the 
use  of  the  six  loose  blanks  and  the  single  cost  book  which  embody 
the  entire  machinery  of  Mr.  Tellefsen's  cost-keeping  methods. 

The  original  scheme  of  his  system  included  only  three 
printed  blanks  and  a  single  book  called  the  "Flat  Cost  Book," 
wherein  the  flat  cost  items  are  recorded  and  aggregated.  The 
three  original  cards  were  the  "Production  Order,"  the  "Cost 
Card,"  and  the  "Workman's  Time  Card." 

To  these  three  original  blanks,  which  were  successfully  used 
for  a  considerable  time,  three  other  blanks  have  now  been  added, 
the  later  three  serving  to  reduce  the  labor  of  the  foreman  of  the 
machine  shop,  and  to  ensure  accuracy  of  sub-division  in  the 
record  of  workmen's  time  distribution.  These  three  supplemen- 
tary cards  are  numbered  3,  5,  and  6. 

The  addition  of  these  printed  forms  is  merely  an  illustration 

37 


38  THE  COMPLETE  COST-KEEPER. 

of  the  general  truth  that  where  a  factory  accounting  system  is  once 
introduced,  it  tends  towards  self-perfection ;  the  ease  and  accuracy 
v/ith  which  printed  forms  collect  the  costs  of  details  which  they 
fully  cover,  infallibly  leading  to  the  devising  and  installation  of 
additional  blank  forms,  precisely  covering  details  which  were  not 
reached  in  a  wholly  satisfactory  manner  by  the  blank  forms  before 
placed  in  use.  The  economical  limit  of  the  number  of  blank  forms 
which  may  be  employed  in  a  given  factory  cannot  be  fixed ;  it  is  a 
safe  statement,  however,  to  say  that  it  is  economical  to  use  any 


Hyatt  Roller  Bearing  Co.,  Newark,  N.  J. 

Their  No SHOP  ORDER.                     Our  No 

Special  Instructions                                Date 19 . . 



^                              

Ship  to 

Via : To  be  Completed 

Completed 

nvoic  e Per 

FORM    I.      PRODUCTION    ORDER. 
8J^  ins.  wide  by  5^^  ins.  high.     White  paper 

form-blank  which  collects  cost  details  not  wholly  and  particularly 
recorded  by  the  forms  in  previous  use,  or  which  conveys  informa- 
tion not  otherwise  clearly  and  definitely  imparted.  This  statement 
obviously  opens  the  way  to  the  employment  of  a  considerable  num- 
ber of  blank  forms,  and  it  is  undoubtedly  economical  in  all  cases  to 
add  a  new  blank  form  to  any  accounting  system,  whenever  it  be- 
comes clearly  apparent  that  such  addition  can  aid  in  producing 
an  accurate  record. 

It  is  also  true  that  the  tendency  of  every  factory  organization 
is  always  towards  increased  detail  in  productive  labor  time  divi- 
sions. Originally  this  extremely  simple  system  produced  a 
time  record  divided  only  by  labor  charges  to  the  different  order 
numbers   on    which  the  workman  was  employed.      Later  it  was 


THE  COMPLETE  COST-KEEPER.  39 

found  important  to  know  the  time  expended  on  each  operation 
performed  on  each  order  number,  so  form-blank  No.  3  was  devised, 
by  which  each  order  is  charged  with  the  individual  labor  time  of 
each  separate  operation  performed  in  the  execution  of  the  order 
during  one  week. 

The  added  forms  5  and  6  are  obviously  useful  labor  savers,  as 
well  as  needful  conveyers  of  information  in  unmistakable  form. 
Previous  to  the  introduction  of  forms  5  and  6,  their  equivalents 
must  have  been  original  productions,  made  either  by  the  chief 
draughtsman  or  the  foreman  of  the  machine  shop,  or  by  the  work- 
man himself,  and  being  made  without  printed  forms  must  have 
been  liable  to  errors  and  difficult  of  filing  and  preservation.  In 
such  a  case,  where  fixed  terms  of  information  and  cost  are  to  be 
recorded  for  each  separate  order,  it  is  always  economical  to  pro- 
vide and  use  a  printed  form. 

The  production  order  is  authorized  by  the  manager  and  made 
by  the  clerk. 

Fig.  I  is  a  reduction  of  the  office  order  to  the  shop  to 
produce  merchandise  or  finished  factory  product.  The  size  of 
the  original  is  5I  inches  x  8f  inches,  which  makes  a  wide  line 
space,  and  increases  legibility.  This  card  is  printed  on  stiff  paper, 
and  has  pinned  to  it  when  it  is  sent  into  the  shop  the  card  shown 
in  Fig.  2,  size  5^  inches  x  8^  inches,  which  is  ruled  in  three  divi- 
sions, the  first  for  standard  stock  parts  to  be  drawn  on  the  order 
from  the  finished-store  rooms,  the  second  division  for  regular  cast- 
ings taken  from  the  rough  stores,  and  also  containing  space  for 
entries  of  sundries,  while  the  third  division  contains  in  five  lines 
the  final  cost-totals,  so  that  this  single  card  is  made  to  include  the 
final  office  record  of  flat  cost  of  materials  and  labor,  and  the  total 
cost,  with  the  per  cent.,  additions  for  shop  expense  and  office  ex- 
pense included;  thus  the  entire  accounting  history  of  the  order 
is  contained  on  this  one  card,  which  may,  of  course,  be  filed,  card- 
index  fashion,  in  a  very  small  space,  so  that  the  card  of  any  order 
in  a  year's  work^  or  even  more,  is  instantly  accessible. 

What  is  called  the  "Cost  Card,"  is  shown  in  Fig.  2.  The 
blanks  of  the  first  division  of  this  card  are  filled  by  the  clerk ;  all 
the  shop  entries  are  made  by  the  department  foreman.  The 
entries  in  the  final  division  of  six  items  of  totals  are  made  in  the 


40 


THE  COMPLETE  COST-KEEPER. 


WEIGHTS  OF  MATERIALS  USED  IN 
BEARINGS. 

Order  No Order  entered . 


Size 
of  Stock 


Grade 


Size. 


Weight 


Cost 


Rollers. 
Yoke. . . 
Lining. 
Sleeve  . 


Castings  {«--• 
Sundries 


Total  Cost  of  Materials  Used 

Total  Amount  of  Labor 

%  for  Shop  Expenses 

%  for  Office  Expenses 

Total  Net  Cost " 

Amount  of  Invoice 

FORM    2.      COST   CARD. 
Sji  ins.  wide  by  8J^  Ins.  high.    Heavy  paper. 


THE  COMPLETE  COST-KEEPER.  41 

office,  so  that  the  card  serves  in  a  very  perfect  manner  its  two  pur- 
poses of  a  current  and  a  final  record,  as  it  gives  no  general  infor- 
mation, or  total  cost  information,  until  after  the  final  six  entries 
are  made  on  the  card  after  its  return  from  the  shop.  This  is  a 
highly  meritorious  combination  and  one  which  is  not  altogether 
obvious,  inasmuch  as  the  matter  tabulated  in  the  final  six  items  of 
the  shop  order  card  is  often  separated  from  the  stock  card 
in  cost-keeping  practice,  and  kept  in  a  separate  book,  often 
locked,  although  the  information  contained  in  the  shop  order  is 
always  an  essential  part  of  the  conditions  leading  up  to  these  final 
totals,  and  the  final  totals  are  often  cryptic  when  read  apart  from 
the  shop  order. 

Any  degree  of  privacy  in  the  final  disposition  of  these  shop 
orders  after  they  have  been  made  to  include  the  total  costs  may  be 
had  if  they  are  subjected  to  card-index  filing,  as  with  a  locked 
cover  to  the  filing  case  they  are  just  as  secure  as  total-cost  volumes 
with  locked  covers  in  a  locked  cabinet. 

A  duplicate  production  order  is  made  by  the  clerk  and  sent 
to  the  chief  draughtsman,  who  enters  the  order  in  a  ''Specification 
Book,"  kept  by  him,  and  returns  the  order  to  the  clerk,  signed  with 
his  name,  and  it  is  filed  by  the  clerk  as  a  "memorandum"  produc- 
tion order.  The  chief  draughtsman  makes  drawings  as  needed, 
orders  patterns  made  by  the  pattern  maker,  and  sends  patterns  and 
drawings  to  the  clerk  as  soon  as  the  patterns  are  completed.  The 
pattern  maker  keeps  his  time  on  h^  workman's  time  card,  same  as 
the  machinists.  The  clerk  files  in  sequence,  on  his  "work  in  pro- 
gress file,"  the  duplicate  production  orders  returned  from  the 
chief  draughtsman,  and  as  soon  as  an  order  is  completed  the  memo- 
randum slip  is  removed  from  the  "work  in  progress  file"  and 
placed  on  the  permanent  file,  in  sequence,  all  the  records  per- 
taining to  the  order  going  into  the  permanent  file  with  it.  In  the 
machine  shop,  part  of  the  work  is  day  work,  part  piece  work.  The 
piece  work  time  is  kept  on  the  regular  time  card,  same  as  if  day 
work. 

With  the  production  order  a  "Detailed  Time  Card,"  form 
3,  is  sent  to  the  shop  foreman,  with  the  heading  blanks  filled.  This 
detailed  time  card  is  ostensibly  located  at  the  machine  shop  fore- 
man's desk ;  it  may,  however,  in  certain  cases,  go  to  the  head  work- 


DETAILED  TIME  CARD. 

To  be   filled   out  by   every  man  working    on   orders    designed  to   be   carried 
through     in    detail.      You    will    find    this    card    over    the    foreman's    desk.      No 
excuse  accepted  if   you    fail  to    put    down     below   any    time  which    you  put  in 
on  this   order.      If  you   are   not  sure  ask  the  foreman. 
OrderNo Wp».k    pnHincr iqo 

N 

r>    RnvOQ 

rnorv.    cKoff                                           <;t«l«.            .. 

Man 

No. 

Operation. 

M. 

Tu. 

W. 

Th.      F, 

S. 

Total. 

Rate 

Amount 

Laying  out  and 
Cutting  Plates. 

N..  ..  No. 

Pie 
e  .  . 

ces . 

H  .... 

Tim 



Grooving  Plates 

N..  .. 

H..  .. 

Hammering, 
liending  and 
Rolling  Plates 

N 

^"""^ 

"^"^ 

"^^^ 

^^^ 

~~ 

"^ 

H..  .. 

.... 

Caulking  Ends 

N..  .. 

"" 

■"■ 

"■" 

"" 

H..  .. 

Fitting  Caps 

N.  ..  . 

^ 

H..  .. 

Drilling  Cap, 
Shells  Saddle 

N..  .. 

H...  . 

Riveting 
Saddle 

N 

H..  .. 



Assembling 

N 

H...  . 

Grooving  Ends 

N... 

"" 

H..  . 

Boring  Saddles 

N 

H...  . 

Grinding  Cap 

N 

1 

"^ 

^xx^ 

H..  .. 

1 



Grinding 
Saddles 

N      .. 

H..  .. 

Dressing  Yoke 

N      .. 



H..  .. 

Winding 
Rollers 

(Ft.) 

N      .. 

^" 

• 

^" 

H..  .. 



Cutting  Rollers 

N     . . 

H..  .. 

Dressing 
Rollers. 

N     .  . 

H..  .. 

O.  K. 

Put  No.  of  Pieces  in  upper  space  (N). 
Time  In  Hours  in  lower  space  (H). 

Foreman. 

Return  this  with  Material  Slip  and  PrDduction  Order 

Ordered  Comp. 

FORM    3.      DETAILED   TIME   CARD. 
Syi  ins.  wide  by  tVa  ins.  high.    Heavy  paper. 


THE  COMPLETE  COST-KEEPER.  43 

man  on  the  particular  order  to  which  the  card  belongs.  Every 
workman  performing  any  operation  on  the  order  must  note  the 
time  of  that  operation  on  the  "detailed  time  card."  This  gives 
time  records,  and  also  serves  to  compare  the  time  of  one  work- 
man with  that  of  another  on  the  same  operation. 

The  detailed  time  card  is  finally  certified  by  the  foreman  and 
is  returned  to  the  clerk  at  the  end  of  the  week  or  with  the  com- 
pleted order.  If  the  order  is  still  in  work  at  the  end  of  the  week, 
then  another  detailed  time  card  bearing  the  same  order  ntunber 
has  its  headings  filled,  and  is  sent  to  the  foreman  for  use  the  next 
week. 

Having  received  the  office  order,  as  shown  in  Fig.  i,  the  shop 
foreman  proceeds  to  fill  the  finished-stock  and  rough-material  parts 
of  it  from  the  stores-room,  and  to  give  these  requisites,  with  a 
workman's  time  card,  as  shown  in  Fig.  4,  size  5  inches  x  8  inches, 
to  the  man  who  is  to  perform  the  needful  labor  on  the  order.  This 
time  card  may  have  the  workman's  number  supplied  in  the  office, 
if  thought  desirable ;  suclr  is  the  practice  in  the  Hyatt  shop,  whicii 
does  not  employ  so  great  a  number  of  workmen  that  the  manager 
has  no  knowledge  of  personalities. 

It  will  be  observed  that  the  card  is  made  for  the  full  week  of 
seven  days,  and  that  it  has  three  lines  of  special  accounts,  "New 
Tools,"  "Repairs,"  and  "Expense,"  as  its  head.  As  the  workman 
himself  fills  out  this  card,  he  is  his  own  judge  of  what  shall  be 
charged  to  new  tools,  what  shall  be  charged  to  repairs,  and  what 
shall  go  to  the  "expense"  or  "shop"  account, — ^three  items  which 
can  easily  be  made  subjects  of  controversy  even  among  expert  cost 
accountants.  "Expense"  is  a  general  item,  which  may  include 
anything  or  nothing,  and  some  shop  cost-keepers  abolish  "expense"' 
and  "shop"  entirely  from  the  list  of  chargeable  accounts,  asserting 
That  these  exchangeable  items  open  the  way  for  a  noteworthy  per- 
centage of  inaccuracies. 

"New  tools"  is  rated  as  an  assets  item,  invariably,  while  "re- 
pairs" are  charged  in  the  expense  account.  Mr.  Tellefsen  has  for- 
mulated this  theorem :  "Whatever  is  a  direct  factor  in  the  produc- 
tion of  salable  goods  is  an  asset ;"  and  he  governs  himself  by  this 
assertion.  Hence,  if  a  bar  of  tool  steel  is  given  to  the  tool  smith 
to  forge  into  lathe  and  planer  tools,  these  tools  are  considered 


44 


THE  COMPLETE  COST-KEEPER, 


TIME    CARD. 

HYATT  ROLLER  BEARING  COMPANY, 

No Week  ending 19 . 

Name 

Dept 


Order 
Number. 


Mon. 


New  Toolsi 
Repairs 
Expense      ' 


TOTALS 


Tue. 


Wed. 


Thu. 


Fri. 


Sat. 


Sun. 


Remarks. 


FORM   4.      workman's   TIME  CARD. 
S  ins.  wide  by  8  ins.  liigli.    Heavy  paper. 


THE  COMPLETE  COST-KEEPER.  45 

assets,  having  a  value  composed  of  the  shop  cost  of  the  tool-sted 
bar  and  the  total  cost  of  the  smith's  labor.  But,  when  these 
tools  have  been  worn  by  use  to  where  they  must  go  to  the  smithy 
again,  this  labor  is  charged  as  "repairs/'  and  goes  into  the  expense 
accoimt.  Or,  suppose  a  new  boring  bar,  having  a  multiplicity  of 
cutters,  is  made. — such  tools  being  largely  used  in  these  shops, 
— the  total  cost  goes  into  the  assets,  and  is  inventoried  as  a  profit 
item.  But  repairs  on  this  multiple-boring  bar,  even  if  these  repairs 
involved  an  entire  new  set  of  cutters,  made  from  new  tool  steel 
from  the  stock  room,  would  be  charged  as  repairs.  If  the  new 
cutters  made  of  new  stock  were  credited  as  new  tools,  it  would 
appear  in  the  inventory  that  this  particular  boring  had  two  com- 
plete sets  of  cutters,  whereas,  in  fact,  it  has  simply  had  its  worn 
out  original  set  of  cutters  made  good. 

But,  by  parity  of  reasoning,  it  at  once  appears  that,  while 
the  number  of  lathes  and  planers,  say,  remains  unchanged  in  the 
shop,  the  shop  should  never  be  credited  in  the  inventory  with 
possessing  more  than  one  set  of  small  tools  for  each  machine  tool ; 
hence  the  forging  of  new  lathe  and  planer  tools,  and  the  cost  of  the 
new  bar  of  steel  from  which  these  tools  are  made,  should  go  to  the 
repair  account,  as  expense,  instead  of  into  the  inventory,  as  an 
asset,  in  case  these  tools  merely  replace  old  tools  which  have  been 
worn  out.  This  practice  keeps  the  inventory  correct,  if  small 
tools  are  accepted  assets.  Many  factories  charge  all  small  forged 
tools,  such  as  lathe  and  planer  tools,  boring-bar  cutters,  and  so 
on,  directly  to  expense,  and  there  is  little  question  that  small  drills, 
files,  and  hacksaws  should  go  with  the  oil  and  waste  into  the  ex- 
pense. But  there  is  always  a  feeling  that  large  drills,  which  are 
often  costly,  especially  if  made  above  the  usual  lengths,  and 
which,  though  speedily  worn  out  if  constantly  used,  perhaps  last 
for  years,  if  used  only  occasionally,  should  be  regarded  as  per- 
manent additions  to  shop  equipment,  and  hence  should  go  into  the 
inventory  as  assets.  Fluted  reamers  are  closely  analogous  to  drills 
in  shop  use,  yet,  unless  subjected  to  much  more  violent  usage 
than  is  common  custom,  most  cost-keepers  would  be  inclined  to 
place  an  expensive  set  of  new  fluted  reamers  among  the  shop's 
assets,  instead  of  charging  the  cost  in  a  lump  to  expense  the  day 
the  reamers  were  delivered  to  the  tool-room.    But  circumstances 


46 


THE  COMPLETE  COST-KEEPER. 


alter  cases,  and,  where  a  fluted  reamer  is  in  constant  use,  as,  for 
instance,  in  certain  locomotive  shops,  where  a  man,  in  bolt- 
ing the  cylinder  castings  together,  uses  no  other  cutting  tool,  the 
reamer  is  rapidly  destroyed,  and,  rightly  enough,  is  charged  di- 
rectly to  expense.  Still,  even  in  the  case  of  this  severely-used 
fluted  reamer,  which  is  worn  out  often  and  replaced,  it  makes  no 
practical  difference  whether  the  first  cost  is  carried  on  the  inven- 
tory as  an  asset,  or  is  placed  at  once  in  the  expense  account,  if, 
according  to  the  formula  cited,  only  the  original  tool  is  credited 


Hyatt  Roller  Bearing  Co., 


Date 19 

Weight  of  Plates 

Weight  of  Scrap 


Order 

No. 


No.  of 
Sleeves 


No.  of 
Linings 


Thick- 
ness of 
Steel 


Kind  of 
steel 


ID 


.Foreman 


FORM    5.       BUSHING    CARD. 
8  ins.  wide  by  3^  ins.  high.     White  paper,  ordinary  weight. 

as  an  asset,  while  the  frequent  replacements  of  the  fluted  reamer 
are  charged  to  expense. 

The  total  drawing-room  account  is  charged  as  expense,  be- 
cause the  making  of  the  drawings  of  any  new  bearing  always 
precedes  the  estimate  given  to  the  prospective  customer,  and,  as 
the  possible  customer  may  not  make  the  order  finally,  it  is  safe 
to  consider  the  entire  drawing-room  charges  as  expense,  and  be 
done  with  the  matter. 

The  pattern-making  item  is  larger,  and  is  separately  kept.  All 
the  foundry  patterns  are  of  cast  iron,  and  the  wooden  patterns 
from  which  the  cast-iron  patterns  are  made  form  a  part  of  the 
cost  of  the  iron  patterns.  Since  the  iron  patterns  are  used  directly 
in  the  production  of  salable  goods,  it  follows  that  the  pattern  shop 
account  is  a  credit,  and  goes  into  the  inventory  as  an  asset. 


THE  COMPLETE  COST-KEEPER. 


47 


Form  5,  8  inches  wide  x  3^  inches  high,  is  a  "Bushing  Order," 
or  a  production  order  for  the  soft  sheet-steel  lining  of  the  box  on 
which  the  rollers  travel.  This  order  specifies  the  number  of  bush- 
ings required  ,their  thickness  and  quality,  and  the  weight  of  plates 
used  and  weight  of  scrap  produced  in  filling  the  order.  This  form 
has  its  dimension  blanks  filled  by  the  foreman  or  chief  draughts- 
man, and  is  signed  by  the  foreman  in  all  cases,  and  finally  goes 
to  the  clerk. 


Hyatt  Roller  Bearing  Co.                                Date 19. . 

Order 

No. 

No.  of 
RoUere. 

Diam. 

Length. 

size  of 
stock. 

R  orL 

Diam  of 
Shaa 

Weight  of 
Scrap. 

Weight  of 
Rollers. 

• 

» 

For 

eman. 

FORM   6.       ROLLER    PRODUCTION    ORDER. 
8  ins.  wide  by  3>i  in.  high.     White  paper,  ordinary  weight 

Form  6,  8  inches  wide  x  3^  inches  high,  is  the  "Roller  Pro- 
duction Order,"  and  may  be  filled  either  from  stock  or  by  actual 
production.  The  headings  are  self-explanatory.  This  order  is 
signed  by  the  foreman,  and  finally  goes  to  the  clerk. 

When  the  order  is  completed  it  is  sent  to  the  clerk,  together 
with  all  the  shop  orders  and  records  bearing  that  mmiber,  and 
the  clerk  transfers  the  items  to  the  "Flat  Cost  Record  Book,''  the 
size  of  the  page,  shown  in  Fig.  7,  being  iif  inches  x  9^  inches. 
The  illustration  shows  only  the  left-hand  portion  of  the  page,  addi- 
tional order  columns  extending  the  width  to  the  i  if  inch  dimen- 
sion given  The  head  line  is  for  order  numbers,  which  can  be 
duplicated  in  adjacent  columns,   if  one  column  has  not  room 


48 


THE  COMPLETE  COST-KEEPER. 


Order  No. 


jjq_  .  Hrs.       Rate        Amount 


^^'^         Hrs.         Rate         Amount 


Pattern 
Making. 


Totals 


Labor 


Total 
Labor 


Kind  or 
Size. 


Lbs. 


Cost 


Kind  or 
Size. 


Lbs. 


Rollers 

Compo. 

Lining 

Sleeves 

Cast  Iron 

Sundries 


Total  Cost 


FIG.    7.         PARTIAL   PAGE   OK    FLAT    COST    RECORD    BOOK. 


THE  COMPLETE  COST-KEEPER.  49 

enough.  The  first  line  of  footing-totals  is  for  pattern  making,  the 
second  for  other  labor,  and  the  third  is  for  regular  items  from  the 
finished-stores  room,  with  ample  space  for  sundry  and  unclassified 
items.  The  final  line  of  totals  gives  the  flat  cost,  or  prime  cost, 
and  from  this  the  total  cost  is  made  up  of  these  flat-cost  items,  the 
percentages  for  shop  expenses  and  office  expenses  being  added. 
These  percentages  are  calculated  from  previous  performances,  all 
records  including  the  value  of  output  for  the  month  in  which  the 
performance  occurred,  which  is  in  (3)  another  form  of  "number 
of  men  in  work,'^  and  is  perhaps  the  more  correct  basis  of  expense 
apportionment. 

The  shop-cost  items  include  interest  and  taxes  on  realty,  de- 
preciation of  tools  (which  is  calculated  on  a  basis  that  always  pre- 
serves a  value),  insurance,  and  repairs.  The  office  expenses 
include  all  office  outlays  and  salaries,  supplies,  advertising,  and 
traveling  and  sales  expenses. 

With  these  constant  expenses,  or  expenses  which,  if  not  con- 
stant, may  be  larger  when  fewer  men  are  in  work  and  the  monthly 
output  is  smaller,  it  is,  of  course,  absolutely  essential  that  the  total 
value  of  the  output  for  some  stated  period  be  selected  as  a  basis 
of  computation,  since,  in  case  of  a  $5,000  output  per  month,  the 
expense-percentages,  if  the  expense  remained  constant,  would  be 
twice  as  great  per  dollar  of  output  as  if  the  output  were  $10,000 
for  the  month.  All  the  expenses  have  been  carefully  com- 
puted for  a  long  series  of  months,  and  the  expense-percentages 
for  shop  and  office  are  tabulated  with  their  totals  of  selling  pro- 
duction, and  the  resultant  shop  and  office  cost-percentages.  For 
current  estimates  this  preceding  tabulation  is  consulted,  a  period 
being  selected  in  which  the  output  of  salable  product  corresponded 
in  value  with  what  is  assumed  as  the  probable  output  of  the  current 
similar  period.  At  the  end  of  the  year  all  these  periodic  expense- 
percentage  assumptions  are  tested  by  comparison  with  the  actual 
expenses,  and  are  invariably  found  to  fall  within  a  wholly  insigni- 
ficant percentage  of  error.  This  is  what  might  be  expected  by 
experienced  shop  accountants,  who  well  know  the  surprising  uni- 
formity of  expense  additions  demanded  in  proportion  to  the  num- 
ber of  men  in  work,  or  the  total  value  of  output  for  a  limited 
period  of  time. 


50  THE  COMPLETE  COST-KEEPER. 

Mr.  Tellefsen  believes  that  the  error  in  his  estimates  averages 
considerably  less  than  one  per  cent.,  and  even  says  that  he  himself 
has  often  been  surprised  at  the  close  coincidence  of  his  estimates 
and  the  actual  total  costs  as  shown  by  the  completed  account  of 
finished  work. 

The  time  card  gives  the  workman's  own  account  of  his  shop 
lime. 

This  is  mechanically  checked  by  a  simple  and  effective  form 
of  time-recorder,  so  arranged  that,  by  the  mere  pushing  of  a  but- 
ton, a  record  is  made,  on  a  ruled  sheet,  of  the  time  of  each  work- 
man's entering  and  leaving,  the  record  being  in  such  form  that 
it  can  be  filed  and  compared  with  the  time  entered  by  each  man 
on  his  card. 

The  importance  of  a  mechanical  recorder  for  workmen's  time 
cannot  be  over-estimated,  especially  in  connection  with  any  cost 
system  in  which  the  workmen  make  their  own  entries  on  the  cost- 
cards,  as  it  eliminates  all  possible  chance  of  controversy,  and  a 
comparison  of  the  mechanical  record  and  the  time-card  filled  out 
by  the  workman  settles  every  question  likely  to  arise  between  the 
men  and  the  paymaster. 

The  pay-roll  is  made  up  from  the  workmen's  clock  record. 

It  is  an  open  question  whether  the  workman  or  a  time  taker 
should  take  the  workman's  detailed  time  record.  Both  methods 
are  largely  used,  and  there  are  strong  arguments  in  favor  of  each. 
It  is,  perhaps,  cheaper  for  the  shop,  in  first  cost,  to  have  the  detail 
time  of  the  workman  taken  by  a-  time  clerk  than  to  have  each 
workman  record  his  own  time  on  a  time  card,  and  errors  may  be 
written  by  either  method.  With  workmen  of  very  small  education 
the  time  card  is  quite  as  likely  to  be  correctly  filled  as  where  the 
mechanic  has  greater  clerical  ability;  it  seems  more  a  matter  of 
natural  inclination  toward  business  accuracy  than  of  literary  ac- 
quirements, and  some  workmen  who  know  but  few  words  of  Eng- 
lish always  fill  their  cards  correctly,  while  some  of  the  best  edu- 
cated mechanics  are  not  above  frequent  errors.  Time-takers  are 
also  liable  to  errors  and  misunderstandings,  and,  as  previously 
remarked,  the  question  is  open,  with  the  weight  of  greater  use  in 
favor  of  having  the  workman  fill  an  individual  card. 


THE  COMPLETE  COST-KEEPER.  51 

SYNOPSIS. 

Oi-FiaALS.  The  general  manager,  wno  authorizes  all  pro- 
duction orders,  the  clerk,  who  is  book-keeper,  time-keeper,  stores- 
keeper  and  cost-clerk,  the  chief  draughtsman,  and  the  foreman  of 
the  machine  shop. 

Books  Kept  :  The  flat  cost  book  only,  so  far  as  the  factor}' 
accounting  is  concerned. 

Card  Forms,  six:  Production  order,  weights  of  materials, 
detailed  time  card,  workman's  time  card,  bush  order,  and  roller 
order. 

The  extreme  simplicity  of  the  system  is  made  possible  by  the 
similarity  of  all  orders,  which,  though  differing  vastly  as  to  dimen- 
sions, consist  in  all  cases  of  essentially  the  same  parts,  and  the 
single  clerk  is  enabled  to  perform  the  multiplicity  of  duties  enume- 
rated because  of  thesmallness  of  the  force  in  work. 

The  system  records  costs  accurately  so  far  as  it  goes. 

No  stores-room  books  are  kept,  and  the  factory  accounting 
gives  no  basis  for  a  record  inventory. 

Factories  employing  only  a  limited  number  of  workmen,  yet 
too  many  to  be  operated  with  satisfaction  without  some  form  of 
accounting  beyond  the  time-book  and  pay-roll  of  early  days,  can 
find  in  these  methods  the  basis  of  a  system  meeting  their  require- 
ments. 


A  GENERAL  SYSTEM  FOR  A  MEDIUM 
SIZE  WORKS. 


The  DeLaval  Company  marmfacture  and  sell  the  DeLaval 
Separator,  which  separates  cream  from  milk  by  placing  the  milk 
in  a  steel  bowl,  which  is  turned  at  a  rate  of  speed  sufficiently  great 
to  cause  the  lighter  cream  to  be  separated  from  the  heavier  other 
constitutents  of  the  milk  by  centrifugal  action. 

The  office  of  the  DeLaval  Company  is  located  in  New  York 
City,  while  the  factory,  employing  about  150  men,  is  at  Pough- 
keepsie,  New  York.  The  commercial  books  of  the  DeLaval  Com- 
pany are  entirely  separate  and  distinct  from  the  factory  account- 
ing system. 

Some  factory  accountants  have  promulgated  a  theory  that 
there  is  a  mysterious  and  occult  relation  or  sympathetic  inflec- 
tion existing  between  the  factory  accounts  and  the  commercial 
accounts  of  a  firm  which  produces  the  merchandise  which  it  sells. 
As  is  shown  by  various  examples  given  in  this  book,  the  commer- 
cial books  of  a  factory  may  be  very  few  and  extremely  limited  in 
their  scope  of  record,  and  as  shown  by  this  example  of  the  De- 
Laval  Company's  system,  the  factory  accounting  system  may  be 
entirely  separate  from  the  commercial  accounting,  the  two  having 
no  relation  or  connection  or  modifying  influence  whatever  on  each 
other.  In  general  terms  it  may  be  said  that  there  is  no  well-defin- 
ed connection  between  the  factory  accounting  system  and  the  com- 
mercial accounts,  of  any  concern  which  is  both  maker  and  seller. 
It  is  true  that  under  some  systems  of  accounting,  some  of  the  fac- 
tory accounts  are  carried  into  the  commercial  bookkeeping  de- 
partment. There  seems,  however,  to  be  no  real  need  for  any  such 
mingling  of  the  factory  accounting  and  the  commercial  account- 
ing of  a  manufacturing  and  selling  business,  nor  is  any  useful 
purpose  served  by  such  a  procedure  which  cannot  be  perfectly 
obtained  when  the  cost  accounts  are  wholly  separated  from  the 
commercial  accounts. 

Under  the  DeLaval  system  the  factory  accounting  is  as  whol- 
ly separate  from  the  commercial  accounting,  as  if  the  two  divi- 
sions of  the  business  were  in  wholly  diflFerent  and  independent 

52 


THE  COMPLETE  COST-KEEPER.  53 

hands.  The  factory  accounting  is  kept  by  itself  at  the  works  in 
Poughkeepsie,  while  the  commercial  accounting  is  performed  at 
the  New  York  office  wholly  without  reference  to  the  factory  ac- 
counts, the  factory  being  treated  precisely  as  if  it  were  an  inde- 
pendent productive  concern,  having  for  its  sole  customer  the  New 
York  office.  It  is  true  that  production  orders  in  gross  are  origin- 
ated in  the  New  York  office,  and  by  the  New  York  office  trans- 
mitted to  the  Poughkeepsie  factory.  These  are  neither  more  nor 
less,  however,  than  purchase  orders  for  goods  ready  for  shipment, 
precisely  the  same  as  the  New  York  office  of  the  DeLaval  Com- 
pany might  address  to  any  independent  manufacturer.  The  pre- 
cise manner  in  which  transactions  are  conducted  between  the  New 
York  office  and  the  factory,  is  as  follows: 

The  New  York  office  makes  and  sends  to  the  factory  specific 
orders  for  completed  machines  and  for  repairs,  at  specified  prices, 
these  prices  being  paid  by  the  New  York  office  to  the  factory  in 
exactly  the  same  manner  as  if  the  factory  was  a  wholly  indepen- 
dent concern,  with  the  single  exception,  that  the  factory  mana- 
ger's checks  drawn  on  the  factory's  own  bank  account  in  Pough- 
keepsie, must  be  signed  by  the  company's  Treasurer,  at  the  New 
York  office.  The  prices  which  the  New  York  office  is  to  pay  the 
factory  for  the  various  styles  of  machines  manufactured,  and  the 
piece  prices  of  details  and  repairs,  are  fixed  each  year  from  the 
records  of  the  factory  cost  books  for  the  previous  year,  and  the 
New  York  office  keeps  the  factory's  Poughkeepsie  bank  account 
good.  Should  there  be  a  deficiency  in  the  factory  receipts  at  the 
end  of  the  year,  this  deficiency  would  be  made  up  by  the  New 
York  office.  Should  the  factory  have  made  a  profit,  that  is  to  say, 
should  the  factory's  Poughkeepsie  bank  account  show  a  surplus 
at  the  end  of  the  year,  this  surplus  would  be  returned  to  the  Xew 
York  office,  or  would  stand  as  a  credit  to  the  New  York  office. 
From  this  it  will  appear  that  there  is  no  accounting  relation  be- 
tween the  commercial  books  and  the  factory  books  of  this  con- 
cern. The  factory  is  treated  as  a  trusted  servant,  furnished  with 
money  against  its  production,  and  detailed  to  the  performance  of 
special  duties  with  limited  discretionary  powers,  at  a  point  so  far 
removed  from  the  immediate  control  of  the  master  as  to  render 
other  than  general  direction  impracticable. 


54  THE  COMPLETE  COST-KEEPER. 

The  Factory  Accounting  only  will  be  detailed  here. 
Officials  of  DeLaval  Poughkeepsie  Factory. 
.  General  Factory  Manager. 

Superintendent. 

Assistant  Superintendent. 

Foreman  of  the  Machine  Shop. 

Foreman  of  Assembling  and  Repairs. 

Rough  Stores  Keeper. 

Finished  Stores  Keeper. 

Shipping  Clerk. 

Stores  Clerk. 

Cost  Clerk. 

Time  Clerk. 

General  Manager. 

All  production  orders  originate  in  the  New  York  office,  ex- 
cept the  "P^'  orders  as  hereafter  specified.  The  New  York  pro- 
duction orders  are  transmitted  to  the  General  Manager,  and  are  by 
him  transferred  directly  to  the  factory  superintendent  without 
mark.  The  General  Manager  has  the  direction  of  shipments,  giv- 
ing orders  to  the  shipping  clerk,  also  attends  to  the  general  busi- 
ness of  the  factory,  keeps  up  the  insurance,  and  authorizes  all 
bills  which  are  to  be  presented  for  approval  to  the  Board  of 
Directors  in  New  York,  and  places  workmen's  pay  totals  on  the 
pay  envelopes.  All  checks  drawn  by  the  factory  against  its 
Poughkeepsie  bank '  account  are  made  as  directed  by  the  General 
Manager,  and  are  forwarded  to  the  Treasurer  at  the  New  York 
office  for  signature. 

The  Superintendent. 

The  Superintendent  hires  and  discharges  all  factory  em- 
ployees and  exercises  the  usual  duties  of  general  labor  super- 
vision. The  Superintendent  originates  purchasing  orders  and  is 
the  Acting  Purchasing  Agent,  purchase  orders  made  by  the  Su- 
perintendent going  to  the  General  Manager  for  signature.  He 
also  examines  the  weekly  production  report  made  by  the  cost 
clerk,  and  directs  the  general  course  of  the  factory  production. 
The  Superintendent  makes  a  fortnisfhtly  report  of  assembled  ma- 
chines to  the  General  Manager,  who  also  receives  a  daily  report 
made  by  the  foreman  of  the  assembling  department. 


THE  COMPLETE  COST-KEEPER.  55 


The  DeLAVAL  SEPARATOR  CO.'S  WORKS. 

This  Company  will  only  be  responsible  for  orders  given  on  this  form. 

i  No Poughkeepsie,  N.  Y 


Please  ship  at  once,  per 

Send  Invoice  giving  the  number  of  this  Order  with 
Shipping  Receipt,  promptly. 


The  DeLaval  Separator  Co. 


Please  acknowledge  receipt  and  state 

when  you  will  ship. 


Purchase  Order  Form. 

Made  by  Superintendent,  countersigned  by  General  Manager,  with  stubs,  kept  at  factory. 

Assistant  Superintendent. 

The  Assistant  Superintendent  originates  factory  production 
orders  under  direction  from  the  Superintendent,  keeps  the  Shop 
Production  Order  Book,  and  checks  up  all  invoices  of  rough 
stores  as  received,  as  he  is  the  rough  stores  room  keeper,  and  in 
this  capacity  delivers  all  rough  stores  to  the  workmen  on  presen- 
tation of  "Work**  Cards,  and  also  advises  the  Superintendent  as 
to  purchases  required.  The  Rough  Stores  Room  Book,  debit  and 
credit,  and  the  gross  time  record  are  kept  by  the  Assistant  Super- 
intendent's clerk,  who  is  located  in  the  Assistant  Superintendent's 
office. 

Foreman  of  the  Machine  Shop. 

Besides  his  regular  duties  in  the  supervision  of  labor,  the 
foreman  of  the  machine  shop,  upon  the  receipt  of  a  "Report  Card" 
filled  by  the  Assistant  Superintendent,  proceeds  to  fill  a  **\Vork 
Card"  bearing  the  same  number  as  the  Report  Card. 


56 


THE  COMPLETE  COST-KEEPER. 


Shop  Order. 


No. 


WORK    CARD. 

THE  DeLAVAL  separator  WORKS. 


No. 


Mr. 


Piece  No. 


Name. 


Time. 

Hrs. 

' 

Finished. 


A.  V.  H.  6-98-iom. 


WORK    CARD. 

This  card  is  first  filled  by  the  foreman,  checked  by  the  stores  keeper  when  the  required 

rouiih  stores  are  delivered  to  the  workmen,  and  finally  completed  by  the  time  stamp, 

affixed  1  y  the  machine   sh   p  foreman.     At  the    end  of  each  week  all  of  these 

cards  ro  Vt  the  cost  clerk,  who  checks  i>rime  cost  book  ei:trie3  made  from 

the  stores  ledger  by  these  cards.      The  cost  book  labor  record  is 

made  from  the  time  book,  and  checked  from  work  card  time 

stamps,  on  the  order  card.     These  cards  are  finally  filed 

in    bun   les    on  the  shelf  at- the    back   ot   the  cost 

clerk's  desk,  as    shown     in    the   en^aving, 

each  week.    This  card  is  3)^  inches 

wide    by     sJi     inches    high 

stiff  stock. 


THE  COMPLETE  COST-KEEPER.  57 

This  Work  Card  has  next  below  its  heading  six  lines  for  labor 
time  entries,  which  are  made  from  the  time  stamp  records  placed 
on  the  card  by  the  Foreman  of  the  Machine  Shop,  the  card  being 
dated  by  the  clock  time  stamp  as  soon  as  the  workman  receives  the 
rough  stores  it  calls  for  from  the  rough  stores  keeper.  When  the 
work  is  completed  the  machine  shop  foreman  presents  the  work 
card  to  the  Assistant  Superintendent,  stamped  with  the  record  of 
completion  time  by  the  clock  time  stamp,  the  order  being  charged 
with  the  total  working  time  between  the  two  dates.  This  time 
computation  is  made  and  recorded  on  the  time  book  by  the  Assis- 
tant Superintendent  or  his  clerk,  the  workman  not  being  called 
upon  to  make  any  labor  time  record.  On  the  Work  Card  is  a 
blank  space  upon  which  the  machine  shop  foreman  notes  the  par- 
ticulars of  rough  stores  required  to  begin  work  on  the  order.  The 
machine  shop  foreman  has  no  duties  in  connection  with  the  Fac- 
tory Accounting  other  than  the  filling  of  this  Work  Card,  as 
described. 

The  DeLaval  factory  is  so  arranged  that  the  rough  stores 
room  is  located  at  one  extremity  of  the  building.  From  the  rough 
stores  the  work  in  progress  proceeds  through  the  machine  shop  to 
the  finished  stores  room,  which  is  widely  separated  from  the 
rough  stores  room,  and  is  under  the  charge  of  the  Finished  Stores 
Keeper,  who  receives  finished  factory  detailed  product,  and  de- 
livers the  same  to  the  assembling  and  repairs  department  on  duly 
authorized  "Work  Cards.*'  The  finished  stores  keeper  keeps  a 
finished  stores  book,  debit  and  credit,  each  balance  showing  the 
number  of  a  certain  finished  part  in  store. 

Factory  Production. 
Factory  Production  begins  on  a  requisition  made  on  the  New 
York  office  order  book,  each  leaf  of  which  is  printed  in  three  sec- 
tions, first  a  stub,  retained  in  the  book,  then  a  perforated  cross- 
line  and  the  original  order  filled  at  the  New  York  office  and 
manifolded  on  the  reverse  side  of  the  third  section  of  the  leaf, 
there  being  a  second  cross-line  of  perforations  in  the  order  book 
page,  so  that  the  manifold  order  blank  can  be  turned  under  the 
original  order  blank,  permitting  the  insertion  of  a  carbon  paper 
between  the  two,  and  thus  making  the  filling  of  both  orders  at 
once  possible,  all  as  shown  in  the  reproduction  below : 


58 


THE  COMPLETE  COST-KEEPER. 


(Stub  retained  in  N.  Y.  Office 
Order  Book.) 


No 190 

To  be  shipped 

By 

Via 

Ordered  by 


(Original  Order  made  by  N.  Y.  Office ;  a  duplicate- 
carbon  copy  is  sent  to  the  Poughkeepsie  shop.) 

(POUGHKEEPSIE  WORKS.) 

No New  York, 190 

Ship 

To 


By 


Via. 


Shipped 


NEW   YORK   OFFICE  REQUISITION   ON   FACTORY. 
Size,  6  inches  wide  by  5  inches  high.    This  form  is  used  for  both  new  work  and  repaiA. 

By  use  of  this  ingeniously-devised  order  book  the  New  York 
office  has  a  stub  duplicate  of  each  sh6p  order  transmitted,  and 
the  factory  has  an  original  office  order  and  a  manifold  fac-simile 
duplicate;  the  duplicate  is  compared  with  the  original  order  and 
is  then  returned  to  the  main  office,  thus  certifying  the  receipt  of 
the  order,  while  the  manifold  serves  as  a  check  on  the  stub  in  the 
New  York  office  order  book,  so  that  no  misunderstanding  of  or- 
ders between  the  office  and  shop  is  possible. 

The  New  York  office  requisition  goes  first  to  the  General 
Manager  of  the  Factory,  and  is  noted  by  him  and  then  forwarded 
to  the  Superintendent,  and  is  filled  from  finished  stores  if  possible ; 
if  not  in  stock  the  Assistant  Superintendent  makes  out  a  "Report 
Card^'  in  conformity  therewith,  and  transmits  the  same  to  the 
foreman  of  the  Machine  Shop. 

The  Report  Card  has  three  principal  divisions,  the  first  head- 
ed "R.  M."  meaning  Rough  Material,  or  Rough  Stores,  under 
which  the  stores  drawn  from  the  rough  stores  room  are  note3. 
The  middle  division  is  headed  "F.  M.,"  meaning  Finished  Mate- 
rial, or  finished  stores :  this  division  Is  checked  by  the  Inspector^ 
when  the  report  card  is  delivered  to  him  with  the  finished  order, 
and  the  report  card  then  passes  with  the  completed  work  to  the 
Finished  Stores  Keeper,  who  checks  each  item  with  his  receipt- 


THE  COMPLETE  COST-KEEPER. 


S9 


Shop  Order . . 
No.  of  Part.. 

1 
REPORT   CARD. 

. .  THE  DeLAVAL  separator  WORKS. 

R.  M. 

F.  M. 

F.  M. 

Date. 

Stock. 

Rec'd  by 

Date. 

Good 

Bad. 

Rec'd  by 

Date. 

Good. 

Bad. 

Rec'd  by 

I 

; 

1 
1 

; 

J 

■     1 

i       : 

A.  V.  H.  11-97- 

2ni. 

REPORT    CARD. 


This  "  Report  Card  "  is  the  production  order.    It  is  delivered  with  the  finished  work  which 
it  calls  for  to  the  inspector,  who  records  his  inspection  thereupon,  and  then  sends  it 
with  the  inspected  work  to  the  finished  stores  keeper,  who  sends  it  to  the  assist* 
ant  superintendent,  who  stamps  it  with  his  dating  stamp  in  the  right  hand 
comer  on  the  back,  and  checks  the  order  on  the  order  book  as  com- 
pleted, and  then  forwards  the  report  card  to  the  cost  keej)er, 
who  checks   it  with   his  prime  cost    book,  and    stamps 
it    with    his     official  stamp,  and    the    report    card 
is  then  filed  away  on  the  shelf  at  the  back 
of  the  cost  clerk's  desk,   as   shown  in 
the  engraving.     This  card  is  8^ 
inches    wide    by    5     15-16 
inches    high,    stiff 
stock. 


6o 


THE  COMPLETE  COST-KEEPER. 


ing  signature  in  the  extreme  right-hand  column;  the  report  card 
is  then  returned  to  the  Assistant  Superintendent,  thus  notifying 
him  that  the  order  is  completed  and  placed  in  the  finished  stores 
room.  The, Assistant  Superintendent  then  forwards  the  Report 
Card  to  the  Cost  Keeper. 

When  the  Machine  Shop  Foreman  receives  a  Report  Card 
from  the  Assistant  Superintendent  he  fills  a  "Work  Card"  in  ac- 
cordance therewith,  specifying  rough  stores  required,  and  gives 
this  shop  order  to  the  workman  who  is  to  perform  the  production 


Shop   Order  Rack,   under   Assistant  Superintendent's  Office  Win- 
dows, IN  Machine  Shop. 

This'rack  is  made  with  wooden  frame,  vertical  cross-rails,  and  back,  and  fitted  with  steeply 
inclined  sheet  zinc  partitions,  so  that  each  Order  Card  can  drop  into  its  own  sep- 
arate receptacle  just  far  enough  to  leave  the  first  horizontal  card  di- 
vision fully  exposed.    This  enables  either  the  Assistant 
Superintendent  or  the  Machine  Shop  Foreman 
to  readily  ascertain  what  orders  are 
in  work  by  inspection  of 
the  Shop  Order 
Card  Rack. 


THE  COMPLETE  COST-KEEPER. 


6i 


DATING   CLOCK   STAMP. 

The  notched  card  gauges  on  top  of  this  clock  were  applied  at  the  OcLaval  Shops,  and  the 

various  notches  locate  the  time  stamp  impression  properly  on  the  various 

forms  requiring  a  date. 

labor,  who  presents  the  work  card  to  the  rough  stores  clerk  and 
obtains  the  needful  stores,  and  then  presents  the  work  card  for 
the  clock  time  stamp,  which  places  the  order  in  work. 

The  Work  Card  is  then  placed  in  a  rack,  close  outside  of  the 
Assistant  Superintendent's  office  window,  in  the  machine  shop, 
where  it  remains  either  until  the  order  is  completed  or  until  the 
end  of  the  week,  thus  exhibiting  all  orders  in  work  at  a  glance. 

The  workman  does  not  have  anjlhing  in  the  way  of  an  ordi- 
nary time  card,  and  does  not  make  any  time  record.  All  work- 
men enter  the  factory  at  one  gate,  passing  the  Assistant  Superin- 
tendent's open  window,  inside  the  building:  the  dating  clock 
stamp  is  located  at  the  right  of  this  window. 

On  each  side  of  the  clock  window  there  is  a  time  and  pay 
envelope  rack,  the  top  reaching  up  nearly  to  the  window  sill, 
as  shown  in  the  illustration. 


62 


THE  COMPLETE  COST-KEEPER. 


STAMP  WINDOW  AND  TIME  CARD  AND  PAY  ENVELOPE  RACKS. 


These  racks  have  wooden  frames,  backs  and  vertical  cross  rails,  with  steeply  inclined  zinc 

partitions,  giving  each  envelope  a  compartment  into  which  it  slips  far  enough  to 

leave  only  the  top  division  exposed,  same  as  previously  described  for 

the  Shop  Order  Card.    The  rail  in  the  foreground  makes 

the  workmen  advance  in  single  file. 

On  Monday  morning  the  left-hand  rack  contains  a  number- 
ed pay  envelope  for  each  man  in  work.  The  men  on  entering  the 
shop  pass  the  stamp  window  from  left  to  right,  see  illustration, 
■each  workman  as  he  passes  taking  the  envelope  bearing  his  num- 
ber out  of  the  left-hand  rack.  The  vertical  rails  of  this  rack  are 
faced  with  brass  strips,  on  which  the  compartment  numbers  are 
stamped  in  conspicuous  figures  as  shown  in  the  enlarged  illustra- 
tion of  the  Pay  Envelope  Rack. 

The  workman  presents  his  envelope  at  the  stamp  window 
where  it  is  stamped  with  the  hour  and  minute,  the  notched  gauges 
on  top  of  the  clock  giving  the  impression  location  properly.  The 
workman  then  places  his  stamped  envelope  in  the  rack  on  the 
right  hand  of  the  window,  and  passes  on  into  the  factory.     If  a 


THE  COMPLETE  COST-KEEPER. 


63 


■    Time   Card    and    Pay    Envelope    Rack,    Enlarged    View, 
Showing  Construction. 

workman  leaves  before  quitting  time  he  takes  his  envelope  out  of 
the  right-hand  rack,  has  it  stamped  at  the  window,  and  places  it 
in  the  proper  compartment  of  the  left-hand  rack.  Workmen  leav- 
ing the  shop  at  regular  hours  do  not  touch  the  envelopes.  Dur- 
ing the  noon  hour  the  envelopes  are  transferred  from  the  right- 
hand  rack  to  the  left-hand  rack.  At  about  five  o'clock  in  the 
afternoon  the  time  book  is  made  up  from  the  envelope  time  stamp 
records.  It  is  not  needful  to  stamp  the  regular-hour  leaving  time 
on  the  envelopes,  as  if  the  envelopes  are  in  the  right-hand  rack 
at  quitting  time  the  workmen  have  been  present.  From  these  en- 
velopes the  Assistant  Superintendent's  Clerk,  who  acts  as  Rough 
Stores  Keeper  and  Time  Clerk,  enters  the  total  day's  time  for 
each  workman  on  the  Time  Book,  as  described  later. 

The  time  payment  totals  are  taken  from  the  weekly  time 
book,  the  gross  amount  being  transferred  to  the  upper  left-hand 
comer  of  the  pay  envelope  by  the  General  Manager,  who  is  the 
Cashier  of  the  Factory. 


64 


THE  COMPLETE  COST-KEEPER. 


THE  DeLAVAL  separator  COMPANY. 

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3 

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3    3 

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- 

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CD 

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OO 

TIME  AND  PAY  ENVELOPE. 

Functions  fully  described  elsewhere.  This  is  Manila  envelope,  3^  inches  wide  by  sj^ 
inches  long,  having  a  gummed  flap  at  one  end.  Tliis  card  is  shown  as  belonging  to 
William  Hunt,  workman  No  27.  1  hese  cards  have  four-line  time  record  spaces  for 
each  of  the  six  working  days  of  the  week,  only  two  of  which,  recording  entering  time 
are  commonly  filled,  and  as  stamped  by  the  clock  stamp  this  envelope  shows  that  Huut 
worked  every  day  of  the  week  from  7  a.  m.  and  inferentia'ly  to  12  m.,  and  from  12.30 
p.m.  inferentially  to  5.30  p.  m.,  and  earned  $10.03  by  his  60  hours  labor.  The  back 
of  this  envelope  is  printed  as  follows  :  '•  Employees  must  please  have  their  envelopes 
stamped  by  their  foreman  when  desiring  to  leave  factory  in  working  hours."  "  Em- 
ployees will  please  not  have  their  pay  envelopes  stamped  for  entry  unless  they  remain 
northof  the  ticket  window."  "  All  are  expected  to  be  in  their  places  and  commence 
work  when  the  whistle  blows."  "  Any  error  in  time  or  money  must  be  reported  to  the 
Superintendent  Thursday  morning  between  8  and  9  o'clock."  These  envelopes  are  filled 
on  pay  day  and  passed  out  of  the  superintendent's  window  to  the  workmen  as  they 
leave  the  factory.  The  day  workmen  do  not  sign  a  receipt  as  the  time  stamp  records 
are  affied  under  their  own  eyes. 

The  total  day's  time  is  entered  in  one  line  on  the  time  book 
by  the  Assistant  Superintendent's  clerk  as  stated. 

The  Time  Book  form  covers  the  two  pages,  each  8^  inches 
wide,  making  a  total  of  16  inches  writiiig  width,  ruled  and  headed 
as  shown. 

The  time  distribution  on  the  time  book  is  made  by  the  Time 
Keeper  from  the  records  of  the  shop  cards.  The  totals  must  ba- 
velope  time  stamp  records.  Space  enough  is  left  between  the 
lance  the  total  pay  roll  hours  for  the  week,  made  from  the  en- 


THE  COMPLETE  COST-KEEPER. 


65 


Week  Ending  Jan.  21,  190 

Workman. 

Description. 

No.of      Serial 
Part.    Number. 

Shop. 
Order. 

W.  H.  Morgan  . 

. 

Baby  2.  Housing 

■'       "     Spur  wheel 

H.  B.  cranks 

430     30 

461     i        25 

771   ; 181 

223 

Shop 

Mfg. 

' 

■''  '      ! 

Sam'l  Brown. . . 

Baby  2.     Skim  milk  tubes 

"     "      Spindle  Guards 

507 

P.W. 

429 

P.W. 
533 

533 
429 

160 

28 

24 

24 

28 

224 

"     "        "        '•   P.W.bal.... 
"     "      Spin'le  Gu'ds  "     

1 

Time  Book  Form — Left  Hand  Page. 

Double  page,  each  page  8)^  inches  wide,  giving  8  inches  writing  width,  by  13^^  inches 
high.    This  form  is  filled,  and  is  intelligible  without  special  description. 

gross  time  lines  opposite  each  workman's  number  in  the  time 
book  to  give  one  line  for  each  separate  order  number  charges 
likely  to  be  made  during  the  week;  the  workmen's  numbers  are 
applied  to  the  time  book  left-hand  column  by  a  consecutive  num- 
bering hand  stamp,  The  Bates  Automatic  Numbering  Machine, 
made  by  the  Bates  Manufacturing  Company,  New  York  City. 
Some  of  the  workmen  are  employed  continually  on  the  same  ope- 
ration, hence  their  complete  time  record,  gross  and  detail,  would 
require  only  two  spaces  on  the  time  book :  others  may  require  five 
or  six  lines,  owing  to  the  different  orders  worked  on.  The  time 
keeper  is  aware  of  the  nature  of  each  workman's  emplojrment, 
and  gives  sufficient  space  after  each  workman's  number  to  serve 
the  purpose  of  a  complete  time  distribution  record. 


66 


THE  COMPLETE  COST-KEEPER. 


Week  Ending  Jan.  21,  190 

M. 

10 
10 

T. 

10 
10 

W. 

10 
6' 
2 
2 

T. 

16 

F. 
10 

S. 
9 

s. 

Hrs 

p.  W. 

O.T. 

Total. 

Rate. 
16 

Abstract. 

1 
Amount. 

26 
2 

9 
22 

59 

9 

44 

26 
2 

9 
22 

4 

I 
3 

16 
32 
44 
52 

7 
3 

10 

9 

10 
10 

10 
10 

10 

10 

10 

^ 

iii 

20 

2'8i 

2.5Q 

59 

14 

8 
2 

3 

I 

2^ 

80 

99 

47 

35 

24 

10 

85 

20 
10^ 

10 

9f 
i 

10 

8! 

•  35 
2.24 

2 

' 

Time  Book  Form — Right  Hand  Page. 

Much  of  the  work  in  the  DeLaval  Factory  is  at  piece  rates, 
and  the  present  disposition  is  to  increase  the  proportion  of  piece 
work. 

Workmen's  piece  contracts  are  made  on  piece  rate  forms. 

This  card  is  shown  as  filled,  and  needs  no  description.  Upon 
completion  of  contract  the  card  goes  to  the  Cost  Clerk,  who  files 
it  convenient  for  ready  access  for  two  years,  which  is  considered 
the  limit  of  probable  reference  time. 

The  DeLaval  Separator,  or  milk-and-cream-separating  ma- 
chine, requires  from  6,000  to  7.000  revolutions  per  minute  of  its 
effective  member — a  spindle  carrying-  a  steel  bowl — and  necessi- 
tates construction  of  the  most  accurate  description,  which  must 
always  be  kept  in  perfect  order.  Hence  much  of  the  work  is  re- 
pairs, which  are  all  made  at  hour  rates  by  the  workmen,  and 
charg-ed  at  hour  prices  to  the  customer. 


THE  COMPLETE  COST-KEEPER. 


67 


Date,  Mar.  29,  190                       Part  No.  501                               Order  No.  4 
Workman's  Name,  Samuel  Melgaard. 

Quantity,  80                                  Rate,  20 

16.00 

Week  ending 

Hours. 

Per  Hour 
Rate. 

i 

,      10 

62 

April  3. 

59 

18 

1 

i 

Bal. 

5 
16 

38 
00 

Rec'd  Payment,  Samuel  Melgaard. 

16 

00 

PIECE   RATE    CONTRACT   FORM. 
This  card  form  is  j]^  inches  wide  by  6  inches  high.    The  card  is  shown  as  filled  out  and  re- 
ceipted by  the  workman's  signature.    The  piece  workmen  have  a  weekly  hour  pay 
rate  up  to  20  cents  per  hour,  which  is  paid  on  the  regular  pay  day,  the  piece 
rate  balance  being  paid  at  the  next  pay  day  following  the  completion 
of  the  contract.      In   the  card   shown  the  hour  rate  was   18 
cents,  and  Melgaard  received  $10.62  on  regular  pay 
day,  and  had  a   gain  of  I5.38  over  his   hour 
rate  due  him  when  the  job  was  completed. 

A  filled-out  Repair  Statement  is  here  given. 

Repairs  are  constantly  in  progress.  The  very  great  velocity 
given  to  the  bowls  demands  the  utmost  perfection  of  details  at- 
tainable, and  the  machines  must  be  kept  in  perfect  order  to  pre- 
vent a  costly  waste  oi  dairy  product. 

Repairs  are  made  in  the  Assembling  Department.  A  Report 
Card  and  a  corresponding  "repair  card,"  red,  are  issued  for  each 
repair  order,  same  as  for  new  work,  and  in  addition  a  red  "Sum- 
mary Repair  Card"  is  made  out  for  each  order,  on  which  is  re- 
corded the  name  and  date  of  labor  performance  of  each  workman 
doing  any  work  on  the  order,  the  entries  being  made  by  the  Fore- 
man of  the  Assembling  Department. 

To  hasten  repairs,  machines  out  of  order  are  often  shipped  by 
the  owners  direct  to  the  factory  at  Poughkeepsie,  and  in  this  case 
the  Assistant  Superintendent  may  fill  out  a  "P."  (Poughkeepsie) 
order  with  a  manifold  duplicate,  and,  of  course,  with  the  regular 
report  card  and  red  work  card,  and  red  summary  card. 


68  THE  COMPLETE  COST-KEEPER. 


(POUGHKEEPSIE  WORKS.) 

No.  557.                          ]S?1[    503.  New  York.  3/3/00 

Ship 

To  N.  N.  Winston, 

Smithfield,  Henry  Co.,  Ky. 

By  Express  Via  Am.  X. 

Repair  Baby  No.  2  Bowl  No,  19,547 — your  reports  4204  and  4214. 

I  No.  509  Bowl  Spindle 2.90 

6    ' '    600      ' '     Rivets 10 

I    "    442  Top  Bearing i.co 

4    "     507  Milk  Tubes i.oo 

I     ' '     506  Cream  Screw 10 

I     '*     510  Tubular  Shaft 1.50 

I     "     513  Bottom  Disc 10 

I    "     512  Intm'd  Disc 15 

Bowl  Re-tinned i.oo 

18%  Hours  at  40c 7. 50 

15.45 
Expressage  in 65 

16.10 
Shipped  by 

March  16,  1897. 

Bowl  Re-balanced. 


REPAIR    STATEMENT,    FILLED    IN. 


Repairs  are  always  somewhat  difficult  to  deal  with  in  Fac- 
tory Accounting,  and  these  various  DeLaval  forms  seem  to  cover 
the  situation  effectively,  and  appear  to  be  available  without  much 
modification  for  repairs  in  general.  The  Summary  Repair  Card 
is  extremely  important ;  the  Foreman  records  the  workman's  name 
on  the  summary  card  as  soon  as  he  is  set  at  work  on  the  corres- 
pondingly numbered  repair  order,  thus  making  it  certain  that  no 
labor  charge  is  overlooked  in  making  up  the  repair  statement. 

The  regular  Repair  Order  is  made  by  the  New  York  office 
and  forwarded  by  mail  same  as  New  York  order  for  regular  fac- 
tory production,  on  receipt  of  order  from  the  customer. 

If  in  great  haste,  the'  repair  order  may  take  the  form  of  a 
short  telegram   from  the  New  York  office,  the  machine  to  be 


THE  COMPLETE  COST-KEEPER. 


69 


Shop  Order. 
No 

THE  DeLAVAL  separator  WORKS. 
(Repair  Card.) 

Card. 

No Mr 

Bowl  or  Mach.  No Style 

Report Offi 

ce  Order 

Operation 

Time. 

Hrs.       Min. 

• 

• 

Parts  and  Material. 

Quantitj-.    i     Number.     |                                                      Kind. 

, 

• 

1                                                                                          

•■■ 1                          1                                                    

i ■ 

1 

Finished.                                                                                   A.  v.  H.  n-gy-sm. 

REPAIR    ORDER    FORM. 


Made  by  the  foreman  of  tRe  assembling  department  on  receipt  of  repairs  order.    This  card 
is  4  inches  wide  by  6}4  inches  high,  stiff  stock.     Color,  red. 

repaired  having  been  shipped  by  the  owner  direct  to  the  factory; 
in  the  latter  case  the  repairs  are  made  on  a  "P"  order,  originated 
by  the  Assistant  Superintendent.  This  repair  accounting  system 
seems  to  be  sufficiently  elastic  to  cover  all  ordinary  repair  condi- 
tions, and  is  therefore  worthy  of  careful  attention.     As  stated, 


70 


THE  COMPLETE  COST-KEEPER. 


THE  DeLAVAL  separator  WORKS. 
Summary  Repair  Card. 

Report Office  Order ...... 

Shop  Order 

Bowl  or  Mach.  No Style 


Card  No. 


Name. 


Date. 


SCos-gS-jhi 


SUMMARY    REPAIR    CARD. 

This  card  Is  used  to  record  the  name  of  each  workman  on  each  repair  order.    It  is  filled  bv 
the  repair  department  foreman,  and  goes  with  the  completed  repair  order  to  the  ship- 
ping clerk,  who  makes  all  bills,  so  that  he  will  be  sure  not  to  omit  any 
charges  against  a  repair  order.    The  shipping  clerk  obtains  time 
charged  from  the  shop  order.    From  the  shipping  clerk  these 
cards  go  to  the  cost  clerk,  who  files  them  away.    Size, 
4  inches  wide  by  6  inches  high.    Color,  red. 


THE  COMPLETE  COST-KEEPER. 


71 


No.  P  2128 Rep S.O Po'keepsie 

To                     

By Via 

Q. 

No. 

Pric 

Q. 

No. 

Price 

. .». . 

« 

• 

.... 

POUGHKEEPSIE   ORDER. 

Manifold  duplicate  repair  or  other  special  order  made  by  the  factory  at  Poughkeepsie  in  re- 
sponse to  telegram  generally.    These  order  blanks  are  made  up  in  pads.    The  orig- 
inal is  retained  at  the  factory,  and  the  manifold  is  sent  to  the  New  York  oflSce. 

the  repairs  are  made  in  the  Assembling  Department.  This 
department  delivers  two  reports  daily  to  the  General  Superinten- 
dent, one  report  of  new  machines  assembled,  and  one  report  of 
repairs.     These  daily  totals  are  separately  aggregated,  new  work 


72 


THE  COMPLETE  COST-KEEPER. 


Assembling  Department. 

Date,  January  20,  190 

Shop 
Order. 

Style. 

Part  No. 
Serial  No. 

Quantity. 

Delivered  to 

'       178 

Bi  mach. 

156543 
4 

f5 
6 

7 
8 

9 
50 

I 
2 

156316 

7 
8 

9 
20 

I 
2 
3 
4 
5 
153982 
3 
4 
5 

=      10 

146 

B2  mach. 

127 

AiB.  mach. 

=      10 

=     4 

Signature,  B.  R.  Wright. 

DAILY  "  DEPARTMENT  RECORD  "  FORM. 

Made  by  the  department  foreman,  contains  a  production  record  of  each  department,  made 
for  the  information  of  the  cost  clerk  and  general  superintendent.     If  a  transfer  is 
recorded,  tor  instance  as  of  finished  machines  from  the  assembling  depart- 
ment, to  the  boxing  department,  the  "Delivered  To"  column  is  filled 
by  the  check  or  signature  of  the  receiving  department  fore- 
man.   This  department  record  is  sent  daily  to  the  cost 
clerk,  and  by  him  held  for  information  of  the 
superintendent.    The  size  of  the  form 
is  six  inches  square. 

and  repairs,  and  sent  to  the  sales  department  of  the  New  York 
office  once  in  two  weeks,  where  they  are  submitted  to  the  Board 
of  Directors.  This  keeps  the  Sales  Department  informed  as  to 
production,  stock  on  hand  and  repairs  made.  These  daily  reports 
are  made  on  what  are  known  as  "Department  Record  Forms/' 


THE  COMPLETE  COST-KEEPER.  73 


Report.        28. 

Shop  Order 

Poajfhkeepsie,  N.  Y., 
Office  Order 


Arrived  from . 


.per. 


"  REPORT  "    FORM. 

stub  book,  kept  by  finished  stores  keeper  and  filled  long  hand,  triplicate,  by  him  on  receipt 
of  machines  for  repair.    The  stub  is  kept  on  the  book  in  the  finished  stores  room. 
Copy  No.  1  g:oes  to  the  New  York  oflSce,  which  then  makes  a  factory  order  for  re- 
pairs needed.    Duplicate  No.  2  is  pinned  to  the  repair  order  until  the  work 
is  completed  ;  then  duplicate  No.  3  goes  to  the  cost  clerk's  oflSce,  and 
is  filed  for  reference.    This  form  might  be  made  to  manifold, 
and  the  title  might  well  be  "Record,"  instead  of  "Report," 
as  "Report  Card  "  is  used  to  designate  what  is  vir- 
tually the  production  order.    Page  of  3  report 
forms    is    i6f^    inches  wide    by    5  7-16 
inches    high,  making    the    forms, 
when  separated,   about    5^ 
inches   wide  by  5  7-16 
inches  high. 

As  previously  stated,  machines  to  be  repaired  are  commonly 
shipped  directly  to  the  factory ;  a  letter  of  advice  to  the  New  York 
office  should,  of  course,  be  forwarded  by  the  shipper,  notifying 
the  New  York  office  of  the  shipment  to  the  factory.  To  avoid 
delay  in  case  the  New  York  office  is  not  so  advised,  and  to  advise 
the  New  York  office,  a  Report  form  is  used,  consisting  of  a  stub 


74 


THE  COMPLETE  COST-KEEPER, 


and  duplicate  forms  i  and  2  on  each  page.  This  form  is  i6f 
inches  wide  x  5  7-16  inches  high,  the  stub  and  the  two  dupUcates 
being  printed  alike,  except  as  to  the  "No.  i,"  and  "No.  2,"  and 
each  taking,  when  filled  by  the  Finished  Stores  Keeper,  the  same 
number  in  blue  ink,  applied  by  the  Bates  numbering  stamp. 


Work  Card  Filing  Cabinet 
Photographs  of  the  DeLaval  office  interior  are  reproduced 
here  to  show  the  small  storage  place  required  for  card  form  re- 
cords, and  the  great  ease  of  reference,  owing  to  the  small  size  and 
light  weight  of  the  card  volumes  produced  by  the  use  of  tem- 
porary binders,  as  with  the  "Work  Card"  cards,  or  by  cases  hold- 
ing one  hundred  cards  each,  as  with  the  "Report  Cards."  In  both 
instances,  since  an  even  hundred  of  the  consecutively  numbered 
cards,  arranged  in  numerical  sequence,  fill  each  volume  or  case, 
any  individual  number  can  be  instantly  found  without  reference 
to  any  index  whatever.    All  of  this  card  filing  as  practiced  in  the 


THE  COMPLETE  COST-KEEPER. 


75 


Cost  Keeper's  Desk  and  Shelving  on  the  Wall  Behind  It. 


DeLaval  Factory  Accounting  room  is  very  cheaply  installed,  the 
appliances  being  of  the  simplest  description. 

The  first  of  these  DeLaval  office  interiors,  shows  the  Work 
Card  filing  cabinet. 

The  Work  Cards  when  returned  to  the  cost  keeper,  are  made 
up  in  books  of  loo  cards  each,  by  punching  with  the  "Shannon 
file"'  punch,  and  binding  in  linen  backed  white  paper  covers,  with 
McGill's  brass  fasteners.  All  work  cards  since  the  factory  began 
in  1892  are  filed  in  this  small  cabinet,  which  still  has  plenty  of 
room  to  spare.  As  each  little  volume  contains  100  of  these  shop 
order  cards,  consecutively  numbered  and  indexed  on  the  back,, 
and  since  the  volumes  are  arranged  in  sequence  on  the  cabinet 
shelves,  any  work  card  can  be  instantly  found,  and  can  be  exa- 
mined with  only  a  very  small  part  of  the  labor  which  would  be 
needful  if  these  work  cards  were  kept  in  books. 

Besides  this  little  work  card  cabinet  the  cost  keeper  has  be- 
hind his  desk,  against  the  wall  two  long  shelves,  with  a  short 
shelf  underneath  at  the  left-hand,  for  storing  his  forms  and  the 
correspondence  relating  to  orders,  all  as  shown  in  the  engraving. 


76 


THE  COMPLETE  COST-KEEPER. 


The  upper  shelf  and  part  of  the  second  shelf  support  Am- 
berg  letter  files  which  contain  all  the  correspondence  relating  to 
shop  production  from  he  beginning  in  1892.  The  short  shelf  at 
the  extreme  left,  under  the  second  shelf,  contains  pasteboard  cases 
covered  with  black  cloth,  and  indexed  on  the  back,  each  contain- 
ing 100  "Report  Cards,"  or  Production  Orders,  the  lot  including 
all  issued  since  the  beginning,  in  1892.  Below  this  shelf  is  the 
letter  copying  press  table,  in  the  corner  of  the  room. 


Right  Hand   End  of   Cost  Keeper's  Shelves,  and  Card    Form   and 
Stationery  Cabinet  in  Which  New  Supplies  are  Kept, 

This  engraving  shows  the  Cost-keeper's  Shelves,  with  Am- 
berg  letter  files,  and  the  "Work  Cards,"  checked  on  cost  book,  and 
filed  away  in  bundles,  and  the  upper  part  of  a  Cabinet  which  con- 
tains new  cards  and  printed  forms  and  general  office  supplies. 
This  cabinet,  the  work  card  cabinet,  and  the  three  shelves  shown, 
contain  all  factory  orders  and  card  forms  and  correspondence 
since  1892,  that  is  to  say  for  seven  years  past,  ready  for  instant 
reference.  The  space  occupied  is  very  small,  although  no  regu- 
lar card  filing  cabinets  are  in  use. 


THE  COMPLETE  COST-KEEPER. 


77 


Cost  Keeper's  Desk. 

This  engraving  is  a  reproduction  of  the  Cost-keeper's  Desk, 
as  he  was  working  at  it  the  moment  before  photographing,  mak- 
ing up  the  labor  distribution  on  the  time  books. 

The  large  upright  "Pay  Table"  is  made  on  white  paper,  ce- 
mented to  a  battened  board  3-16  inches  thick,  and  varnished  with 
white  shellac.  The  sliding  T-Square  with  the  down-hanging  tri- 
angular blade,  has  its  beam  rabbeted  to  the  top  of  the  board,  so 
that  it  can  be  moved  along  without  falling  off.  The  "Pay  Table" 
was  filled  in  by  hand  in  black  ink;  the  top  line  of  hour  rates  is 
filled  from  7  cents  to  33^  cents,  by  half-cent  advancements,  7,  7^, 
8.  8^.  and  so  on ;  the  right  and  left-hand  vertical  columns  are  hours 
and  fractions;  the  top  space  is  \  hour,  followed  downward  by  \ 
hour,  f ,  I,  2,  and  3  hours,  and  so  on,  down  to  60  hours  at  the 
bottom  line.  This  complete  flat  pay  table  and  the  T-square  blade 
rate  indicator  together  constitute  a  very  fast  and  a  certain  hour 
and  rate  pay  total  indicating  apparatus,  and  are  considered  wholly 
satisfactory.    The  two  smaller  rate  cards,  just  to  the  left  of  the 


78  THE  COMPLETE  COST-KEEPER.     ■ 

glass  ink  stand,  are  two  short-week  rate  cards,  slipped  into  a 
groove^  in  a  movable  wooden  •  foot-block,  so  as  to  stand  upright. 
These  cards,  of  which  the  cost-keeper  has  a  large  number,  are 
hand-made  one-rate  cards,  shellac  varnished,  for  one,  two,  three, ' 
four,  and  five  days,  for  all  hour  rates  paid  in  the  factory,  one 
card  for  each  rate,  and  are  easier  to  use  for  short  weeks  than  the 
large  universal  pay  table  with  its  movable  T-square  blade  indica- 
tor. The  left-hand  inclined  surface  of  this  T-square  blade  is 
graduated  in  hour-numbered  spaces,  corresponding  with  the  ex- 
treme right  and  left-hand  column  numbers  of  the  pay  table.  These 
are  extremely  simple,  cheap,  and  efficient  aids  to  time  and  rate 
computations,  light,  easily  handled,  and  durable. 

The  bound  books  kept  in  addition  to  the  card  records,  are  as 
follows : 

Rough  Stores  Book,  kept  in  rough  stores  room,  debit  and 
credit. 

■  Finished  Stores  Book,  kept  in  finished  stores  room,  debit  and 
credit. 

Time  Book. 

Prime  Cost  Book,  kept  by  Cost  Clerk. 

Cost  Book,  kept  by  Cost  Clerk. 

Piece  Work  Book,  kept  by  Cost  Clerk. 

Invoice  Book,  kept  by  Cost  Clerk. 

Shop  Order  Book. 

The  Rough  Stores  Book  receives  debit  and  credit  entries  of 
all  rough  stores,  receipts,  and  disbursements.  It  is  kept  by  the 
Rough  Stores  clerk.  The  balances  show  rough  stores  on  hand. 
The  cost  clerk  makes  all  original  entries  from  this  book,  and 
checks  these  entries  by  the  "Work  Card"  entries,  made  when  the 
rough  stores  were  delivered  to  the  order,  thus  making  the  cost 
keeper  verify  all  entries  in  this  book,  kept  in  the  Rough  Stores 
room.  1 

Finished  Stores  Book.  This  is  the  same  as  the  Rough  Stores 
Book  in  form  and  size,  and  is  kept  in  the  finished  stores  room, 
debit  and  credit,  and  verified  by  the  cost  clerk  in  checking  Assem- 
bling room  and  repair  charges. 

The  Time  Book.  This  is  a  record  of  labor  costs  and  distri- 
bution. 


THE  COMPLETE  COST-KEEPER.  79 

The  Prime  Cost  Book.  On  this  book  the  cost  clerk  enters 
the  weekly  totals  of  material  and  labor,  no  matter  whether  the 
order  is  complete  or  incomplete.  The  materials  totals  are  taken 
from  the  stores  ledger,  kept  by  the  stores  clerk,  and  the  time  is 
taken  from  the  weekly  totals  of  stores-cost  and  labor-cost  and 
charged  to  the  proper  order  numbers. 

Cost  Book.  This  book  is  arranged  to  show  comparative  cost 
totals  for  the  same  production  at  different  times.  This  record  is 
of  the  highest  importance,  and  shows  at  a  glance  whether  pro- 
duction cost  rises  or  falls. 

Piece  Work  Book.  This  book  contains  weekly  reports  of 
piece-work  labor  cost,  quantity  produced,  and  balance  due  work- 
man over  his  hour  rate  payment;  these  records  give  piece  rate 
production  cost  fluctuation,  and  if  constant  in  direction  show  a 
rise  or  fall  in  piece  rate  production  cost. 

Invoice  Book.  This  book  carries  a  record  of  invoices  re- 
ceived, and  the  individual  accounts  for  each  supplying  firm,  and 
invoice  totals  in  one-line  entries,  all  for  reference  merely. 

Shop  Order  Book.  This  is  a  very  important  book  of  refer- 
ence; as  it  is  shown  filled  no  detailed  description  is  needed. 

The  following  list  of  card  forms  used  shows  at  a  glance  the 
small  number  of  forms  required  to  effect  a  precise  and  convenient 
cost-keeping  system  in  an  establishment  such  as  has  been  de- 
scribed in  this  chapter,  and  when  the  detailed  nature  of  the  results 
is  considered  it  cannot  be  said  that  the  system  is  complicated  or 
cumbersome. 

The  list  of  official  duties  also  shows  how,  with  but  one  ex- 
ception, the  work  of  cost-keeping  is  made  to  fall  in  with  the  regu- 
lar duties  of  the  various  departments. 

New  York  Office  Requisition  on  Factory. 

Report  Card. 

Work  Card.    White. 

Repair  Card.    Red. 

Summary  Repair  Card.    Red. 

Time  and  Pay  Envelope. 

Report. 

Purchasing  Order  Blank. 

Repairs  Received,  triplicate  form. 

P.  Order. 


8o 


THE  COMPLETE  COST-KEEPER. 


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THE  COMPLETE  COST-KEEPER.  8i 


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82  THE  COMPLETE  COST-KEEPER. 

List  of  Officials'  duties  performed,  bracketed  where  executed 
by  same  individual. 

General  Manager. 

Superintendent. 
(  Assistant  Superintendent. 
(  Rough  Stores  Keeper, 

Foreman  of  Machine  Shop, 

Inspector, 

Finished  Stores  Keeper. 

Foreman  of  Assembling  Room. 

Keeper  of  Time  Book. 

Shipping  Clerk. 

Cost  Keeper. 

The  Cost  Keeper  is  the  only  official  who  could  be  dispensed 
with  if  costs  were  not  kept.  All  of  the  others  are  necessary  for 
duties  not  connected  with  cost-keeping. 

The  combined  workman's  time  record' and  pay  envelope  ad- 
mits hands  to  this  factory  much  more  quickly  than  might  be  sup- 
posed. The  time  stamp  can  be  applied  very  rapidly  indeed,  and 
the  workmen  select  their  envelopes  from  the  "out"  rack,  have 
them  stamped  at  the  window  and  pass  on,  placing  their  envelopes 
in  the  "in"  rack,  with  but  little  more  hindrance  than  occurs  when 
brass  checks  are  used.  The  workings  of  this  combined  time  re- 
cord and  pay  envelope  are  considered  wholly  satisfactory  by  the 
DeLaval  officials,  and  it  seems  very  well  adapted  to  meet  the  re- 
quirements of  the  situation,  where  not  more  than  about  75  work- 
men are  required  to  pass  one  windowi 


A  COMPLETE  SYSTEM  FOR  A  GENERAL 

IRON  WORKS. 

By  R.  F.  Van  Doorn. 


The  firm  of  Struthers,  Wells  &  Company,  of  Warren,  Penn- 
sylvania, was  established  in  185 1.  It  is  engaged  in  the  manufac- 
ture of  steam  and  gas  engines,  boilers,  tanks,  stand-pipes,  etc.,  etc. 
The  firm  is  constituted  in  the  form  of  a  simple  partnership,  the 
executive  officers,  however,  being  ranked  as  is  usual  with  corpora- 
tion officials.  It  is  managed  by  three  of  the  partners,  who  act,  re- 
spectively, as  Managing  partner.  Superintendent,  and  Treasurer. 
The  Managing  Partner  directs  the  policy  of  the  firm.  The  Super- 
intendent performs  the  duties  of  General  Manager,  and  has  charge 
of  the  entire  working  routine  of  the  establishment  in  all  branches. 
The  Treasurer  has  charge  of  all  the  financial  details. 

In  presenting  the  cost  system  employed  at  the  works,  it  is 
needful  to  include  the  entire  system  of  accounting  employed,  be- 
cause in  the  consideration  of  production-cost  the  factory  manager 
must  needs  deal  with  both  the  flat  costs  of  production  and  the  gen- 
eral charges  and  expenses.  A  certain  line  of  articles  may  show 
a  satisfactory  flat  cost  when  compared  with  the  selling  price,  but 
in  order  to  determine  the  value  of  this  product  as  a  "money- 
maker," all  the  expenses  and  other  external  costs  which  are  charge- 
able to  this  line  of  product  must  be  determined  and  applied.  This 
system  of  accounting  seems,  notwithstanding  the  number  of  forms 
used,  to  be  carried  out  at  low  cost  when  the  information  obtained 
by  its  operation  is  considered. 

The  cost-keeping  will  be  described  first,  and  will  be  followed 
by  the  accounting  system. 

In  general  terms,  a  cost-keeping  system  is  valuable  exactly  in 
proportion  to  the  minuteness  of  detailed  information  which  it 
aflFords.  The  manager  is  concerned,  finally,  with  gross  results,  but 
he  can  change  those  gross  results  only  by  modifying  the  details 
of  his  practice,  and  before  he  intelligently  can  change  practice  de- 
tails he  must  know  his  costs  in  detail.  This  naturally  leads  to  a 
multiplication  of  sub-production-order  divisions,  and  if  all  these 
orders  have  to  be  transferred  to  account  books  there  evidently 

83 


84  THE  COMPLETE  COST-KEEPER. 

must  be  a  point  somewhere,  beyond  which  the  clerical-labor  ex- 
pense will  render  the  obtaining  of  more  minutely  divided  costs 
uneconomical. 

The  central  idea  of  this  system  of  factory  accounting  is  to  pro- 
duce a  composite  collective  cost  record  for  each  production-order, 
which  shall  contain  the  entire  history,  chronology,  and  industrial 
record  of  the  order's  execution,  combining  this  complete  history 
finally  in  an  integral  document,  readily  filed  and  always  accessible. 
It  is,  however,  essentially  a  card  system,  and  the  peculiar  feature 
which  makes  it  both  unique  and  efficient  is  the  form  of  the  "order 
card,"  or  production-order  blank  form.  Instead  of  being  a  flat 
sheet  of  suitable  size,  the  order  blank  is  folded  in  the  middle,  mak- 
ing a  folio  cover,  within  which  sub-production-order  cards  may  be 
secured,  thus  giving  the  possibility  of  amplifying  detail  to  any 
desired  extent,  while  beginning  with  a  uniform  blank  of  conve- 
nient size  and  of  universal  application,  which  is  always  retained . 

It  must  be  remembered  that  the  precise  form  of  any  blank 
in  a  cost-keeping  system  is  of  the  greatest  importance,  and  the  fact 
that  these  forms  as  shown  are  the  result  of  years  of  use,  during 
which  every  one  has  undergone  repeated  alterations,  renders  them 
worthy  of  the  closest  examination.  The  general  conception  of  a 
cost  system  first  must  be  correct,  and  then  the  exact  form  of  a 
card  which  best  fills  its  function  in  that  system  must  be  obtained  by 
trial.  Hence  the  value  of  the  information  here  given,  each  indi- 
vidual form  being  so  treated  as  to  show  its  exact  content  and  ar- 
rangement. 

Production  begins  with  the  origination  of  the  production- 
order,  and  the  production-order  will  be  followed  through  the  cost- 
accounting  to  the  point  where  it  reaches  the  book-keeper  and  sa 
becomes  an  item  of  the  commercial  accounting,  thence  through 
the  commercial-accounting  system  to  the  conclusion.  During  this 
exposition  all  the  collateral  acts  bearing  upon  its  growth  and  opera- 
tion will  be  considered  under  the  general  heading,  Exposition  of 
Cost  System.  From  the  time  it  enters  the  hands  of  the  book-keeper 
and  falls  into  the  commercial  accounting,  the  original  production- 
order  and  its  resulting  sub-production-orders  will  be  considered 
under  the  general  heading,  Exposition  of  Commercial-Accounting 
System. 


THE  COMPLETE  COST-KEEPER.  85 

Forms  Used. 

Production-order  record-book,  form  A. 

Boiler-shop  boiler-production-order,  forms  B,  C,  D,  and  E. 

Boiler-shop  general  production-order,  forms  F,  G,  H,  and  I. 

Machine-shop  steam-engine  order,  forms  J,  K,  L,  and  M. 

Machine-shop  gas-engine  order,  forms  N,  O,  P,  and  Q. 

Machine-shop  general  production-order,  forms  R,  S,  T,  U. 

Foundry  production-order,  form  V. 

Smithy  production-order,  forms  W,  X,  and  Y. 

Black  cost-cards,  forms  AA  and  AB. 

Green  cost-cards,  forms  AA  and  AB. 

Pattern  cards,  form  AC. 

Expense  cards,  forms  AD  and  AB. 

Duplicate  cost-cards,  form  AE. 

Plate-order  cards,  form  AF. 

Card-register  book,  form  AG. 

Card-transfer  book,  material,  form  AH. 

Card-transfer  book,  labor,  form  AH. 

Cost-per-pound  book,  forms  AJ  and  AJJ. 

Labor-detail  book,  form  AAJ. 

Example  and  description  of  each  of  the  above  forms. 

The  order  record-book,  form  A,  carries  a  record  of  all  pro- 
duction-orders in  numerical  sequence,  with  date  of  entry,  num- 
ber, and  name  of  customer,  memorandum  of  goods  covered  by 
same,  cost  of  raw  material  and  labor,  selling  price,  and  amount  of 
profit.  If  the  extreme  right-hand  column  is  blank,  the  order  has 
not  been  charged.  If  all  other  columns  are  filled  the  blank  right- 
hand  column  calls  for  immediate  investigation.  The  size  of  page 
is  13  inches  wide  x  16  inches  high. 

The  production-order  for  horizontal  tubular  boilers  is  a  book 
6  inches  wide  x  9  inches  high.  The  first  page  of  the  cover  is 
printed  as  per  form  B. 

The  next  page  is  blank.  The  normal  inclosure  of  this  heavy 
manila  cover  consists  of  14  leaves,  28  pages  of  engineer's  paper 
quadrille  ruled  in  i -6-inch  squares,  in  blue  lines.  The  first  page 
is  headed  "Size  and  Style,"  the  second  "Smoke  Box,**  the  third 
"Plates";  2  9-16  inches  below  the  quadrille  ruling  is  broken  by  a 
red  line,  and  the  caption  "Coupons  and  Tesf '  covers  the  remain- 
der of  page  3.    Page  4  is  headed  "Tubes,"  and  2  9-16  inches  below 


86 


THE  COMPLETE  COST-KEEPER. 


1 

3 
{J 

<E 

I 

::::::::::::::::-: 

O  V 

a. 

:::'::     i     i     ::     i     ::::::     : 

o*  S 

E 

a 

B 

s 

O 

E 

V 

2 

E 
o 

OOOOCOOOOOOO        O^O^O 
OOOOOOOOOOOOCnOOGO 


o*     o^     o*     o*     o^     o^     o^ 

00   00   00    00    CO    00   oo 
CO   C*^    CO   CO   to   CO    CO 


THE  COMPLETE  COST-KEEPER, 


87 


B.  B. 


Do  not  fold  this. 
Order.  _ 


For 

Filled 

For 

Post  Office. 
Ordered  by. 
Ship  to 


Horizontal  Tubular  Boilers. 

190. . . .     Entered 190 


By. 


Patterns  ordered. . 
Castings  ordered. 


.  190 . .  j  Forgingfs  ordered. 190. 

,190. .1  190. 


Charged . 
Terms. . . 


190 . .     Amount,  $ . 


Delivery Credit. 


A 



R 

C 

D 

E 

F 

G 

H 

T 

J 
K 

L 

FORM  B. 


88  THE  COMPLETE  COST-KEEPER. 

comes  the  headline  "Braces."  Page  5  is  headed  "Riveting";  4-^ 
inches  below  comes  "Manholes."  Page  6  is  divided  equally  be- 
tween "Handholes"  and  "Nozzles,"  and  page  7  the  same,  under 
headings  "Flanges"  and  "Tapped  Openings."  Page  8  is  equally 
given  to  "Dome"  and  "Dry  Pipe,"  and  page  9  to  "Feed  Pipe"  and 
"Wall  Brackets."  All  of  page  10  is  headed  "Front,"  and  all  of 
page  II  is  given  to  "Stack.  "  Page  12  is  headed  "Breeching,"  and 
on  page  13  "Grate  Bars"  have  4I  inches,  "Rear-Grate  Bearer"  has 
1 1  inches  and  "Wall  Plates"  have  if  inches  vertical  space.  Pages 
14  and  15  are  divided  into  equal  thirds  under  heads  "Rollers," 
*'Guys,"  "Rear-Arch  Bars,"  "Rear- Ash-Door  and  Frame,"  "Safety 
Valve"  and  "Steam  Gauge."  Page  16  has  three  heads,  "Water 
Column,"  "Gauge  Cocks,"  and  "Water  Gauge."  Page  17  has  four 
heads,  "Main  Stop  Valve,"  "Feed  Valve,"  "Feed  Check  Valve." 
Page  18  has  four  heads,  "Whistle  and  Pipe,"  "Buckstays,"  "Buck- 
stay  Rods,"  and  "Test."  Page  19  has  "Insurance,"  if  inches  ver- 
tical space,  and  "Inspection"  covers  the  rest  of  the  page.  Thence 
to  page  25  the  pages  are  not  headed. 

Page  25  is  printed  for  cost  account  as  per  form  C.  Page  26 
is  a  continuation  of  same,  as  per  form  D,  and  page  27  continues 
as  per  form  E. 

The  final  two  pages  of  the  folio  cover  of  this  order  form  are 
blank,  because  the  sub-production-order  blanks  used  in  this  pro- 
duction of  the  order  are  to  be  finally  bound  against  the  inside  of 
this  cover  with  brass  fasteners.  It  will  be  observed  that  this  pro- 
duction-order form  covers  all  the  parts  which  go  to  make  up  a 
regular  horizontal  tubular  boiler,  and  also  includes  ample  space  for 
noting  any  variations,  alterations,  or  additions. 

All  production-orders  used,  except  for  horizontal  tubular 
boilers,  are  printed  upon  sheets  6  inches  wide  x  18  inches  long, 
folded  in  the  middle,  making  four  pages  6  inches  wide  x  9  inches 
high.  The  first  page  of  all  production-orders  is  printed  in  copy- 
ing ink. 

The  general  order  for  boiler  shop  products  is  shown  by  forms 
F,  G,  H,  and  I. 

The  machine-shop  production-order  for  steam-engines  is 
shown  by  forms  J,  K,  L,  and  M. 

The  machine-shop  production-order  for  gas-engines  is  shown 
by  forms  N,  O,  P,  and  Q. 


THE  COMPLETE  COST-KEEPER. 


89 


Form  C.                               COST  ACCOUNT. 

Reference;  T— Tracing.  I— Information  Sheet.  P — Pattern.  O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight   Amount. 

I 
2 
3 

4 

5 
6 

7 

8 

9 
10 
II 
12 
13 
14 
15 
16 

17 
18 

19 
20 
21 
22 

23 
24 

25 
26 

27 

. cast  iron  front  comnlete. 

■ 

Anchors  for  front, 

Set grates inches 

long,  to  make  a  space  of inches  wide 

Rear  g^ate  bar  bearer . . .  long  of . . .  x . .  iron, 
Boiler  stand, 

, 

.... 
.... 

i 

: 

Wall  plates, x x 

Rollers, x 

Stack X of iron. 

Feet  of inch  galvanized  wire  rope, . . . 

Tee  irons  for  rear  arch long 

Angle  irons  for  rear  arch long 

Rear  ash  door  and  frame.    Opening . . .  x . . . 

Set  Anchors  for  same 

Lever  safety  valve, with bottom, 

inch .' case  steam  gauge, 

Cast  iron  water  column,  with  openings  into 
boiler . .  .inch  and . .  inches  center  to  center. 
Glass  water  gauge,  with  glass x 

. 

inch gauge  cocks, 

....  inch  globe  valve 

. . .  .inch  check  valve, 

inch gate  valve. 

....  inch whistle. 

....  feet inch  pip>e 

.... 

Buckstays 

Buckstay  rods, 

■ 

Forward 

. .  . 

"~" 

^ 

'go 


THE  COMPLETE  COST-KEEPER. 


Form  D. 

References  :      T— Tracing.      I— Information  Sheet.      P— Pattern.      O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight. 

Amount. 

28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
!   39 
40 

41 
42 

43 
;   44 

'   45 

;  46 

;  47 

48 

49 
50 

52 

53 

54 
55 

Forward 

Boiler  steel, 

Stack  iron, 

Boiler  rivets, 

Stack  rivets 

feet  of Tubes, 

Tee  iron  for  braces 

Other  braces, 

All  flanges,  except  dome  flange, 

Manhole  for  shell  complete, 

Manhole  plate,  yoke  and  bolt  for  head, .... 

Stiffening  ring 

Handhole  plate  and  yoke, 

Handbole  bolt, 

Manhole  gasket, 

Wall  brackets, 

Pipe  for  feed  pipe 

Ells  for  feed  pipe, 

Labor  on  boiler, 

Labor  on  stack, 



Forward 

^^^ 

'^" 

1 

THE  COMPLETE  COST-KEEPER. 


91 


Form  E. 

Reference  :        T— Tracing.        I— Information  Sheet.—        P— Pattern.        O— Order. 

No. 

56 
57 
to 
86 

Pes. 

Item. 

Ret. 

Weight. 

Amount. 

Forward 

Form  G. 


DETAILS. 


Forms  R,  S,  T,  and  U  show  the  machine-shop  general  pro- 
<iuction-orcier. 

The  first  page  of  the  folio  foundry  production-order  is  shown 
by  form  V.    The  other  three  pages  are  blank. 

The  first  three  pages  of  the  smithy  production-order  are 
shown  by  forms  W,  X,  and  Y.    The  last  page  is  blank. 

The  use  of  all  the  foregoing  production-orders  is  explained 
in  detail  later. 

The  black  cost-cards,  which  are  sub-production-orders,  are 
5^  inches  wide  x  8|^  inches  high,  printed  as  shown  by  forms  AA 
front  and  AB  back,  and  are  used  to  procure  material  from  other 
departments  than  the  one  in  which  the  production-order  lies. 
Forms  AA  and  AB  are  from  the  boiler  shop.  Similar  black  cost- 
cards  are  used  for  the  machine  shop,  bearing  the  letter  M  instead 


92 


THE  COMPLETE  COST-KEEPER. 


Form  F. 
B.  G, 

REC'D  IN  SHOP, 

FILLED 

FOR 

POST  OFFICE... 
ORDERED  BY... 
SHIP  TO... 


ORDER 

...190..     SENT  TO    SHOP. 
...190..     ENTERED 


.igo. 
.190. 


BY. 


Patterns  ordered. 
Castings  ordered. 
Tubes  ordered. . . . 


.190. . 
.190. . 
.190. . 


Forgings  ordered. 
Steel  ordered 


.190. 

.190 

.190. 


Prints  Ready 

190. . 

Nos 

CHARGED 

..190..         AMOUNT,  $ 

TERMS 

DELIVERY 

CREDIT 

A 

B 

C 

D 

F 

G 

H 

I 

J 
K 

L 

M 

N 

0 

P 

THE  COMPLETE  COST-KEEPER. 


93 


Form  H. 


SUMMARY. 


Reference  :      T— Tracing.      I— Information  Sheet.      P— Pattern. 

O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight 

Amount. 

I 

Labor  in  shop   

i      . 

•?! 

Labor  in  field 

3 
4 
5 
6 

Expenses  itemized : 

■ 



7 

8 

....                   .        ; 

9 

lO 

Patch  bolts 

• 

Flange  steel 

II 

Shell  steel 

12 

Tank  steel,  heavier  than  3-16 

13 

15 

t6 

Tank  steel,  No.  9  to  3-16 

No.  10  sheet 

No.  12  sheet 

No.  14  sheet 

17 

t8 

No.  16  sheet 

Angle  iron ' 

19 

20 

Tee  iron 

Tank  rivets 

21 

Stack  rivets 

22 

Boiler  rivets 

23 
^1 

Stay  bolts 

feet  of inch  tubes 

Forward 

... 

94 


THE  COMPLETE  COST-KEEPER. 


Form  I. 

Reference  :        T— Tracing.        I — Information  Sheet.        P— Pattern.        O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight. 

Amount. 

25 
26 

to 

50 

Forward 

Form  J. 
M.  E. 


Filled 

For 

Post  Office. 
Ordered  by . 
Ship  to 


DO  NOT  FOLD  THIS  SHEET. 

Order 

190 . .         Entered 


.190. 


By. 


Charged . 
Terms. . . 
Delivery 

A 
B 
C 
D 
E 
F 
to 
S 


,190. .  . .       Amount,  $. 


.Credit. 


THE  COMPLETE  COST-KEEPER. 


95 


Form  K. 


SUMMARY. 


Reference:      T— Tracing.      I— Information  Sheet.      P— Pattern.      O— Order. 


No. 


I 
2 
3 
4 
5 
6 

7 
8 

9 

lO 

II 

12 

13 
14 
15 
i6 
17 

i8 

i 
1     ig 

I  20 
21 
22 

I     ^3 

I 

;     24 

I      26 


Pes. 


Item. 


Bed,  with  pillow  block  cap  and  gibs . 

Top  guides 

Distance  blocks 

Crosshead 

Piston 

Piston  rod  gland 

Valve  stem  stand 

Cylinder  with  jacket 

Cylinder  head 

Steam  chest  cover 

Valve 

Valve  stem  gland 

Valve  stem  complete, 

Crank  box 

Crosshead  box 

Connectmg  rod  complete,  less  boxes. 

Crank  shaft  only 

Crank  disk  only 

Crank  balances  only 

Crank  wrists,  for  side  cranks  only. . . 

General  work  on  crank 

Pulley X 

Pulley X 

Fly  wheel 

Gov.  pulley  for  shaft 

Gov.  pulley  for  governor 


Ref.  1  Weight. 


96 


THE  COMPLETE  COST-KEEPER. 


Form    L. 


No. 

27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 

41 

42'  i. 

43   i. 

! 

44 
45 
46 

47 
48 
49 
50 

51 
52 
53 


Pes. 


Item. 


Studs  and  nuts  for  top  guides, 

Studs  and  nuts  for  cylinder  head, 

Studs  and  nuts  for  S.  C.  cover, . 

Studs  and  nuts  to  hold  cylinder  to  bed, 

Eccentric 

Eccentric  strap, 

Assembling  eccentric, 

Eccentric  rod  box, 

Eccentric  rod  less  box,. ...    

Assembling  engine, 

Piston  gland  studs  and  nuts, 

Valve  stem  gland  studs  and  nuts,  . . . . . 

Pillow  block  studs  and  nuts, 

Bolts  to  bolt  valve  stand  on, 

Pulley  and  fly  wheel  keys, 

Exhaust  flange  for pipe 

Cap  screws  and  nuts  for  P.  B.  Cap... . . 

Tail  box  comp.  with  sole  plate, 

Governor, 

Lubricator, 

Oil  cups, 

Oil  cups, 

Oil  cups, 

Oil  cups, 

Cocks, 

Cocks, 

Cocks, 

Forward 


Ref.  'Weight 


THE  COMPLETE  COST-KEEPER. 


97 


t  Form  M. 

1 

Reference  :      T— Tracing.      I— Information  Sheet.     P— Pattern.      O— Order. 

j     No.  j    PCs. 

Item.                                            i  Ref.  ;  Weight-  Amount. 

1 

Forward .•.-....  i  ■.  = 

54 

Cock, 

j     55^ 

i 
56 

57 

;  58 

!     6o 

i 

1     6i 

62 

^ 

Valve, 

Valve, 

Valve, 

Valve, 



..r — - Wrench, 

.* Wrench, 

I 
i 

Wrench, 

1 

Holding  down  bolts. 

1 

63 

Holding  down  bolts. 

64 
65 
66 

67 
78 
79 

Washers, 

.' Washers, 

Valve  stem  slide 



• 

of  B  on  the  face.  These  letters  B  and  M  show  from  which  depart- 
ment the  order  issued.  No  other  departments  issue  these  cards. 
They  are  made  out  either  by  the  head  draughtsman  or  the  fore- 
man of  the  department,  as  explained  later,  and  are  registered  on 
the  inside  of  the  production-order  in  the  place  provided  therefor, 
and  bear  the  serial  order  number,  and  also  a  specific  item  number 
with  reference  to  this  particular  production-order  only,  so  thai 
their  position  in  the  list  of  material  can  be  determined  readily  with- 
out running  over  the  whole  list  of  cards. 


98 


THE  COMPLETE  COST-KEEPER. 


Form  N. 
M.  G.  E. 


DO  NOT  FOLD  THIS  SHEET. 


Engine  No Order 190 . 

Filled 190. .  . .         Entered igo. 

For 

Post  Office , 

Ordered  by 

Ship  to By 


Patterns  ordered 190 . 

Castings  ordered 190. , 


Forgings  ordered. 190. 

190. 


190. , 


Amount,  f . 


Charged 

Terms 

Delivery Credit , 


D 


H 


K 


M 

N 


O 


Q 

R 


THE  COMPLETE  COST-KEEPER. 


99 


Form  O. 


SUMMARY. 


Reference  :      T — Tracing.      I — Information  Sheet.    P — Pattern.      O — Order. 


No. 


Pes. 


I 
2 

3 
4 
5 
6 

7 
8 

9 
lo 
II 

12 

13 
14 
15 

i6 

17 
i8 

19 

20 
21 
22 
23 
24 


Item. 


Bed  with  pillow  block  caps  bolted  on 

Babbitt  liners  for  pillow  blocks , 

Piston  less  rings,  but  witti  wrist. 

Piston  rings 

Cylinder 

Capscrews  to  bolt  cylinder  to  bed 

Cylinder  head 

Studs  with  nuts  to  bolt  cylinder  head  to 

cylinder " " ' " 

Mixing  chamber  complete,  less  valves 

Exhaust  valve  and  stem 

Spring  for  same 

Air  and  gas  valve  and  stem 

Spring  for  same * 

Side  rod  for  exhaust  complete  with  roller 
Side  rod  for  mixing  valve  complete  with 

roller  and  governor  wrist 

Gas  elbow  with  capscrews 

Indicator  cock,  complete 

Complete  bracket  for  side  rods, , 

Connecting  rod,  complete  less  boxes. . . 

Crank  box , 

Piston  box 

Crank  shaft 

Fly  wheel diameter, 

Wheel  keys 


Ref. 


Weight 


Amount. 


lOO 


THE  COMPLETE  COST-KEEPER. 


Form  P. 

Reference  :      T— Tracing.      I— Information  Sheet.      P— Pattern.      0— Order. 

No. 

25 
26 

27 
28 
29 
30 
31 
32 
33 
34 

TO 
51 

Pes. 

Item. 

Kef. 

Weight. 

Amount. 

Exhaust  Piping 

Air  Pipe  and  Fittings 

Gear  for  Shaft 

Gear  for  Valves "..'.".'.".'. 

Wrist  and  Nuts  for  same .". ..... . . 

Assembling  Engine 

Bunsen  Burner 

Igniting  Tube 

Chimney. ...       . .           

Painting 

Forward 

"""^ 

^^^ 

1 

Form  P. — 6  inches  wide  by  9  inches  high. 


Form  Q. 

Reference  :     T— Tracing.      I— Information  Sheet.      P— Pattern.      0— Order. 

No. 

Pes.                                            Item. 

Ref. 

Weight. 

Amouni. 

52 
TO 
76 

Forward 

^^^" 

^^" 

. 

Form  Q.— 6  inches  wide  by  9  inches  high. 


THE  COMPLETE  COST-KEEPER. 


lOI 


Form  R. 
M.  G. 


Rec'd  in  Shop. 

Filled 

For 

Post  Office 

Ordered  by. . . . 
Ship  to..-. 


Issued  by- 


Approved  : 


O 


Order 

.  190 . .       Sent  to  shop 190 . 

.  190 . .       Entered 190 . 


By. 


Patterns  ordered , 
Castings  ordered. 
Tubes  ordered . . . . 


.190. . 
.190. . 


Forgings  ordered. 
Steel  ordered 


.190. 
.190. 
.190. 


Prints  ready . . 

190       Nos 

Charged 

Terms 

190 . .     Amount,  $ 

Deliverv 

Credit 

A 
B 
C 
D 
E 
F 
G 
H 
I 

K 
L 
M 
N 
0 

• 

Form  R. — 6  inches  wide  by  9  inches  high. 


I02 


THE  COMPLETE  COST-KEEPER. 


Form  S. 


DETAILS. 


Form  S. — 6  inches  wide  by  9  inches  high. 


Form  T.                                      SUMMARY. 

Reference  :      T— Tracing.      I— Information  Sheet.       P— Pattern.      O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight. 

Amount. 

I 

TO 
25 

Forward 

^^^■K 

^^" 

Form  T. — 6  inches  wide  by  g  inches  high. 


Form  U. 

Reference  :     T— Tracing.      I— Information  Sheet.      P— Pattern.      O— Order. 

No. 

Pes. 

Item. 

Ref. 

Weight 

Amount. 

26 
TO 
51 

Forward 

. 

"^" 

^^ 

Form  U. — 6  inches  wide  by  9  inches  high. 


THE  COMPLETE  COST-KEEPER. 


103 


Form  V. 
F. 


Do  not  fold  this  sheet. 
Order 


Filled 

For 

Post  Office. 
Ordered  by. 
Ship  to..... 


.190. 


Entered . 


.190. 


By. 


Patterns  ordered. 
Castings  ordered. 


.  190 . 
.190. 


Forgings  ordered . 


.  190 . . 
.190. . 


Charged . 
Terms. . . 
Delivery . 


.190..     Amount,  ^ 
Credit 


A 

i 

B 

1 

c 

D 

1    . 

E 

'' 

F 



1 

G 

j 

H 

1 

I 

K 

L 

M 

' 

N 

- 

0 

P 

Q 

R 

See  next  page. 


I04 


THE  COMPLETE  COST-KEEPER. 


Form  W. 

S. 

Filled 

For 

Do  not  fold  this  sheet. 

Order 

190 . .        Entered ." . . 

. . . 190 . . 

Post  Office 

Ordered  bv 

Ship  to 

: By 

Patterns  ordered 190 . . 

Castings  ordered 190 . . 

Forgings  ordered 

190. . 

. . .190. . 

Charged 

190..     Amount,  $... 

Terms . 

Deliverv . 

Credit 

A 
B 
C 
D 
E 
F 
G 
H 
I 

K 
L 
M 
N 
0 
P 

R 

THE  COMPLETE  COST-KEEPER. 


K>5 


;  Form  X.                                   SUMMARY.       ' 

Reference:     T— Tracing.      I— Information  Sheet.      P— Pattern.      O— Order. 

1     No. 

Pes. 

Item. 

Ref. 

Weight 

Amount 

i 

.   A 

« 

.... 

B 

I    c 



i 

1 

D 

■■"T"' 

! 

E 

.... 

t 

1 

P 

I 

-, 

1 

•  .   •   •      ... 

•  i 

G 

,; 

H 

1 

i 

: 

I 

1 

..  .    ■ 

Form  X. — 6  inches  by  9  inches. 


io6 


THE  COMPLETE  COST-KEEPER. 


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Form  Y.— 6  inches  by  9  inches. 


THE  COMPLETE  COST-KEEPER.  107 


Form  AA. 

COST  CARD. 

B. 

Warren,  Pa 

190 . . 

Order  No. 

Item 

Pieces 

For 

Description  of  Job. 

(Over.) 

Pass  to 

Pattern  shop. 

Foundry. 

Smithy. 

Machine  shop. 

Carpenter. 

Form  AA.— 6  inches  wide  by  9  inches  high. 

Green  cost-cards  are  used  for  the  same  purpose  as  the  black 
cards,  but  are  confined  to  the  boiler-shop  department,  and  are 
used  for  such  portions  of  the  boilers  or  other  products  as  are  not 
required  to  be  sent  into  the  boiler  shop  to  be  attached  to  the  boiler 
proper,  such  as  fire  fronts,  wall  plates,  grate  bars,  rear-arch  bars, 
etc.  Before  these  cards,  after  being  filled,  go  back  to  the  boiler 
shop  they  go  to  the  assistant  superintendent,  who  inspects  the 
material  and  stamps  the  cards  "inspected  and  approved."  They 
are  the  same  as  the  black  cost-cards  in  form,  but  are  printed  in 
green. 

Pattern  cards,  like  the  black  cards,  are  issued,  but  only  for 
new  patterns  or  alterations  of  old  patterns.  They  are  printed  on 
only  one  side,  as  per  form  AC.  They  require  the  approval  of  the 
assistant  superintendent  to  vitalize  them. 

Expense  cards,  like  the  black  cards,  are  issued,  but  only  for 
obtaining  material  or  labor  that  is  needed  in  the  specific  job  in 
hand,  but  would  not  necessarily  be  required  for  a  similar  job.  The 
object  of  this  is  to  record  in  the  summing  up  of  the  total  cost  of 
the  job  that  which  is  probably  necessary  for  a  duplication  of  the 
job,  and  in  a  separate  place  that  expense  which  is  attached  only  ro 
the  specific  job.  Of  course,  for  the  specific  job  the  sum  of  the  two 
items,  as  compared  with  the  selling  price,  is  to  be  taken  into  con- 


io8 


The  COMPLETE  COST-KEEPER. 


Form  AB. 
'     Labor: 

Kind. 

Name. 

Hours. 

Rate 

Amount. 

Planer,   .... 

Lathe, 

Vise, 

Shaper,  .... 

Mill 

Drill 

Keyseater, . . 



Material: 

Cast  Iron pounds 

Cast  Brass pounds 

Foreinc: 

hours 
)unds 
)unds 

Wrought  Iron pc 

Genuine  Babbitt ..pc 

r  •  ■  • 

Common  Babbitt pounds 

1 

' 

Total 

"■^ 

1 

Form  AB. — 6  inches  wide  by  9  inches  high. 


THE  COMPLETE  CO  ST -KEEPER. 


109 


Form  AC. 


Wanted  by 
Department. 

Order  No Item . 

For 


PATTERN  CARD. 


.190. 


Pattern  Maker  : 

Please '. pattern 

No for 


as  per  tracing  NO"; 


When  dotte  put  No.  of  pattern  on  accompanying  card  and  pass  all 
papers  back  to  Transfer  Office.  If  no  alteration  or  new  pattern  needed, 
state  so  below,  and  return  to  Transfer  Office. 


Assistant  Superintendent. 


Time 


Material 


Total, 


Form  AC. — 6  inches  wide  by  9  inches  high. 


no  THE  COMPLETE  COST-KEEPER. 

object  of  this  is  to  record  in  the  summing  up  of  the  total  cost  of 
the  job  that  which  is  probably  necessary  for  a  duplication  of  the 
job,  and  in  a  separate  place  that  expense  which  is  attached  only  to 
the  specific  job.  Of  course,  for  the  specific  job  the  sum  of  the  two 
items,  as  compared  with  the  selling  price,  is  to  be  taken  into  con- 
sideration, to  determine  profits,  but  for  the  purpose  of  estimating 
on  a  similar  job  the  expense  items  should  be  scrutinized  for  the 
purpose  of  ascertaining  how  much,  if  any,  of  same,  would  prob- 
ably appear  in  the  second  job. 

The  cash  totals  of  these  cards  are  carried  to  the  cost  columns  of 
the  production-order  in  red  ink  and  not  footed  into  the  total  of  the 
column.    These  sums  are  collected  separately,  and  are  set  near  the 

total  footings  in  a  space  stamped  "Expense  Items  $ ,"  with  a 

rubber  stamp.  The  front  of  the  card  is  shown  by  form  AD.  The 
back  is  same  as  form  AB. 


Form  AD. 
Dept. 

EXPENSE  CARD. 

190. . 

X. 

Order  No 

For 

Warren,  Pa 

Item 

. .  Pieces 

Description  of  Job. 

(Over.) 

Pass  to 

Pattern  Shop. 

Foundry. 

Smithy. 

Carpenter. 

Boiler  Shop. 

Form  AD.     6  inches  wide  by  9  inches  high. 

Duplicate  cost-cards  are  used  by  the  supply  clerk  to  notify 
the  storeroom  for  what  order  certain  material  purchased  outside 
is  bought.  When  these  goods  are  received  the  clerk  in  the  store- 
room fills  in  the  dates  of  receipt  and  returns  the  card  to  the  supply 
clerk. 

When  plates  are  received  before  the  shop  is  ready  to  com- 
mence work  upon  them  they  are  piled  up  in  the  yard  in  racks,  with 


THE  COMPLETE  COST-KEEPER.  iir 


Form  AE. 

For  Order  No 

DUPLICATE  COST  CARD. 

Supply  Dept., 190 . . 

Warehouse : 

Please  receive  and  store  for Dept., 

the  following  goods : 


Return  this  Card  to  me  as  soon  as  goods  are  received. 

Supply  Clerk. 


Goods  ready. 190 . 


Warehouse : 

Deliver  to Dept.,  above 

goods  when  wanted. 

Supply  Clerk. 
Warehouse  : 

Please  deliver  at  once. 


Foreman. 


Goods  delivered 190 . . 


Form  AE.     6  inches  wide  by  9  inches  high. 


112 


THE  COMPLETE  COST-KEEPER. 


Form  AF.  , 


ORDER  FOR  PLATES. 


,  190. 


Warehouse : 

Please  deliver  to 

the  following  plates  numbered  and  marked  as  per  margin  : 


Order. 

Number. 

Size. 

Delivered. 

Order  rec'd 190 . . 

Filled .* . .  .  190 . . 


Foreman. 


Form  AF.     6  inches  wide  by  9  inches  high. 

the  number  of  each  order  painted  upon  each  plate.  While  remain- 
ing here  they  are  under  the  charge  of  the  storeroom  keeper,  and 
when  the  boiler  shop  foreman  is  ready  for  them  he  fills  in  a  "re- 
quest for  delivery"  form  and  sends  it  to  the  storeroom.  This  card 
is  6  inches  x  9  inches,  and  is  shown  by  form  AE. 

Form  AF  is  used  by  the  boiler  shop  to  obtain  stock  plates 
from  the  storeroom  for  any  specific  order.  It  is  to  be  understood, 
of  course,  that  the  boiler  plates  are  only  constructively  in  the  store- 
room :  in  point  of  fact  they  are  stored  elsewhere,  but  until  the 
plates  are  ordered  into  the  boiler  shop  by  use  of  this  plate  order, 
they  are  in  charge  of  the  storekeeper.  This  form  is  imiform  in 
size  with  the  cost-cards. 

The  card  register  is  a  book  in  which  each  line  is  numbered 
consecutively  and  wherein  every  card  of  every  description  is  regis- 
tered and  a  chronological  history  made  of  its  passage  through  the 
shops.  This  book  after  the  card  has  been  through  the  shops 
and  returned  to  the  department  in  which  its  production-order  lies, 
shows  as  follows : 


THE  COMPLETE  COST-KEEPER. 


"3 


Form  AG.                                                                                     Card  Register. 

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114  THE  COMPLETE  COST-KEEPER. 

First,  the  individual  number  of  the  card  in  reference  to  ali 
other  cards,  the  number  of  its  production-order,  date  received  by 
the  supply  clerk,  the  respective  dates  when  it  went  into  the  depart- 
ments through  which  it  had  to  pass,  and  when  it  came  out  of  said 
departments,  a  brief  mention  of  what  the  material  was,  and,  finally, 
the  date  upon  which  the  card  was  returned  to  the  department  from 
which  it  was  issued.  The  pages  of  this  book  are  i6  inches  wide 
X  13  inches  high,  and  are  shown  by  form  AG.  The  brief  mention 
of  the  material  is  written  in  the  column  of  the  department  issuing 
card. 

There  are  two  card-transfer  books  wherein  are  recorded  the 
costs  appearing  on  the  back  of  the  sub-production  orders,  for  the 
purpose  of  making  a  financial  transfer  from  one  department  to  an- 
other, so  as  to  give  the  department  doing  the  work  or  furnishing 
the  material,  credit  for  such  labor  or  material  disbursed,  and  charg- 
ing the  value  to  the  receiving  department. 

These  two  books  are  exactly  the  same  and  have  their  lines 
numbered  consecutively,  each  commencing  at  the  same  number. 
On  one  of  these  the  labor  entering  into  the  sub-production-order  is 
entered,  and  upon  the  other  the  material  values  are  recorded.  Two 
books  are  used  so  as  to  separate  labor  accounts  and  material  ac- 
counts until  the  final  closing  into  the  respective  loss  and  gain 
accounts  of  the  several  departments.  The  pages  of  these  books 
are  16  inches  wide  x  13  inches  high.  In  the  headline  of  one  is 
printed  "Material"  and  in  the  headline  of  the  other  "Labor."  The 
general  form  is  AH. 

The  cost-per-pound  record-book  has  pages  8  inches  wide  x 
13^  inches  high.  The  left-hand  page  is  shown  by  form  A  J,  and 
the  right-hand  page  by  form  AJJ.  The  two  opposite  pages  make 
the  complete  record.  The  first  column  gives  the  order  number,  the 
next  the  number  of  articles,  then  the  size  and  weight,  followed  by 
the  flat  cost  and  shop  cost  respectively,  and  under  these  are  the 
gross  costs  and  the  rate  per  pound.  On  the  opposite  side  under 
the  head  of  "Remarks,"  is  given  a  brief  description  of  the.  particu- 
lar article. 

This  book  records  the  labor-cost  of  product  manufactured  in 
the  boiler  shop,  and  gives  the  actual  cost  of  the  article,  and  also  the 
rate  per  pound,  for  reference  in  making  quick  estimates.     Onlv 


THE  COMPLETE  COST-KEEPER. 


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Form  AH.     16  inches  wide  by  13  inches  high. 


.ii6  THE  COMPLETE  COST-KEEPER. 

such  part  of  any  order  is  entered  in  this  book  as  is  strictly  boiler- 
plate work;  if  an  order  embraces  in  addition  to  the  boiler-plate 
work,  castings  or  other  material  not  directly  attached  to  the  plate 
work,  that  portion  of  the  order  is  omitted,  so  that  this  record  fur- 
nishes a  comparison  between  the  costs  of  strictly  boiler-shop  pro- 
duct, both  total  cost  and  rate  per  pound.  In  entering,  similar 
orders  are  grouped  to  facilitate  comparison  of  production  costs. 
In  using  these  totals  for  guidance  in  estimating,  full  consideration 
must  be  given  to  all  points  of  difference  between  the  article  to  be 
produced  and  those  with  which  it  is  compared.  Individual  judg- 
ment must  be  carefully  exercised  in  this  connection,  as  the  records 
contained  in  this  book  cannot  serve  as  an  exact  guide  when  the 
articles  under  consideration  are  dissimilar. 

The  labor-detail  book  has  pages  13  inches  wide  x  16  inches 
high,  and  is  shown  by  form  AAJ. 

This  book  is  used  for  making  a  continuous  record  of  all  opera- 
tions on  each  of  the  ultimate  elements  of  all  the  parts  of  each  kind 
of  production.  This  book  also  records  such  isolated  items  of  labor 
costs  as  may  be  considered  of  value  for  future  reference,  as  obtain- 
ed from  day  to  day  by  the  cost-clerk  in  his  investigations  of  the 
various  labor  records  that  pass  through  his  hands.  At  the  head  of 
the  page  is  recorded  the  elemental  name  of  the  article,  and  imme- 
diately below  it  the  weight  and  kind  of  material  entering  into  it  is 
inserted.  Below,  the  page  is  divided  into  two  parts  vertically  for 
the  purpose  of  giving  ample  room  for  recording  various  processes. 
The  page  is  arranged  for  separate-item  records  of  operations  per- 
formed upon  the  one  piece,  and  the  name  of  each  operation  is  writ- 
ten in  bold  letters  at  such  place  upon  the  page  as  is  determined, 
starting  close  to  the  left  hand  of  each  half-page.  Below  this  is 
recorded  the  date  of  the  operation,  the  workman's  name,  the  labor 
time,  rate  per  hour,  amount  of  money  paid,  the  number  of  pieces 
produced,  and  the  rate  per  piece.-  A  reference  to  the  rate-per-piece 
column  will  show  at  a  glance  the  fluctuations  from  day  to  day,  thus 
giving  to  the  superintendent  and  foreman  knowledge  of  such  ope- 
rations as  need  looking  into  and  improving  in  method.  Where 
.  the  work  is  done  by  the  piece  the  entry  is  made  in  red  ink. 

The  above-described  forms  are  used  principally  if  not  exclu- 
sively for  the  record  of  what  may  be  called  "intermittent"  produc- 
tion-orders,  as   distinguished    from   "standing"  or  "continuous" 


THE  COMPLETE  COST-KEEPER. 


117 


Form  AJ.     (  Left-hand  page.) 

COST  PER  POUND. 

Order 
Number. 

No. 

Size. 

Weight 

Field  Cost.      1 

Ship  Cost. 

Amount. 

Rate. 

Amount. 

Rate. 

• 

1.  .  .  . 

1 

Form  AJ.    Left-hand  page.    8  inches  wide  by  131^  inches  high.    The  left- 
hand  page  and  right-hand  page  together  make  the  complete  form. 


Form  AJJ.     (Right-hand  page.) 


ON, 


Remarks. 


Form  AJJ.     Right-hand  page,     8  inches  wide  by  133^  inches  high.     The 
left-hand  page  and  right-hand  page  together  make  up  the  complete  form. 


ii8 


THE  COMPLETE  COST-KEEPER. 


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orders.  For  the  standing- 
order  records  the  following 
forms  are  used  : 

Transfer  card,  form  AK. 
Stock-work  card,  form  AL. 
Piece-work  card,  form  AM. 
Foundry  report-card,   forms 
AN  and  AO. 

The  transfer  card  is  of  stan- 
dard size,  but  is  printed  in  red 
ink.  The  face  of  the  card  is 
as  shown  by  form  AK.  The 
back  is  the  same  as  form  AB. 
The  transfer  card  is  used 
for  procuring  material  from  a 
department  other  than  the  one 
issuing  the  card.  It  is  used 
for  obtaining  all  kinds  of  ma- 
terial except  such  as  enters 
into  the  production -orders, 
which  is  procured  upon  the 
various  kinds  of  cost  or  sub- 
production  -  cards  elsewhere 
described.  This  card  is  used 
also  for  procuring  material 
from  the  smith  shop  for  both 
the  machine  shop  and  boiler 
shop  for  standing  orders,  in 
the  same  manner  that  the 
stock  work-card  is  used  for 
obtaining  labor  in  the  ma- 
chine shop.  This  card  is  also 
used  between  departments  or 
in  the  same  department  for 
transferring  production  mater- 
ial and  labor  to  unproductive 
uses.  This  card  passes  through 
the  transfer  office  the  same  as 
any  sub-droduction-card. 


THE  COMPLETE  COST-KEEPER. 


119 


Form  AK. 


Do  not  fold  this  sheet. 
TRANSFER  CARD. 


Filled 190 . .         Dated 190 . 

Charge 

Credit 


.Entered. 


,190. 


Please  furnish  for Shop : 


Pass  to 
Pattern  Shop. 
Foundry. 
Smithy, 
Machine  Shop. 
Carpenter. 


Foreman. 


Form  AK.     Transfer  Card.     6  inches  wide  by  9  inches  high.     Printed  in 

red  ink. 


The  stock-work  card  is  of  standard  size,  and  is  printed  upon 
yellow  paper  as  per  form  AL.  This  card  is  used  to  order  the 
machine  shop  workmen  to  perform  the  various  operations  upon 
those  products  which  are  being  continuously  produced  on  standing- 
orders.  In  continuously  manufacturing  a  product  it  is  not  prac- 
ticable to  issue  production-orders  for  a  certain  specific  number  of 
completed  machines,  and  carry  those  orders  arbitrarily  througii 
the  shop,  making  only  the  number  of  parts  called  for,  as  may  be 
done  with  intermittent  orders  for  special  material,  because  it  is 
often  desirable  to  make  a  larger  number  of  certain  parts  than 
might  at  first  be  specified  on  such  order.  This  by  reason  of  the 
size  or  character  of  the  parts,  or,  in  some  instances,  to  keep  other- 


120  THE  COMPLETE  COST-KEEPER. 

wise  idle  tools  in  work,  and  the  foreman  of  the  machine  shop  is 
authorized  to  issue  this  stock- work  card  to  keep  tools  busy,  he 
being  expected,  however,  Ho  avoid  an  over-stock  of  any  parts. 
This  stock-work  card  furnishes  the  cost-clerk  with  a  knowledge  of 
the  cost,  collective  and  separate,  of  all  the  operations  performed 
on  any  parts  entering  into  the  continuous  product.    To  this  end. 
the  foreman  makes  one  card  for  each  specific  operation  on  one 
size  piece  only.    The  number  of  pieces  is  not  material  so  long  as 
they  are  identical'  and  the  operation  is  the  same,  except  that,  bar 
accident,  the  machine  tool  and  attendant  should  have  clear  time  in 
prospect  for  the  completion  of  the  order,  before  rn^an  and  machine 
are  set  to  other  work.    To  bring  this  about  each  machine,  as  say, 
an  engine  of  a  certain  size,  is  analyzed.    It  is  sub-divided  into  all 
of  its  component  production  elements  which  are  reduced  to  their 
lowest  terms.    Then  a  schedule  is  made  of  the  separate  operations 
upon  each  of  those  ultimate  elements.    The  foreman  is  furnished 
with  an  indexed  book  of  convenient  size  in  which  all  these  opera- 
tions are  recorded,  and  he  makes  out  his  stock-work  card  in  ac- 
cordance with  this  book  list.     When  the  work  upon  any  stock- 
work  card  is  completed  and  certified  by  the  workman,  it  is  turned 
back  to  the  foreman  of  the  machine  shop,  who  approves  it,  and  the 
money  computations  are  made  by  the  clerk  of  the  machine  shop. 
It  is  then  passed  to  the  cost-clerk  and  is  entered  upon  the  labor 
detail  book,  form  AAJ,  under  the  particular  operation  for  the  par- 
ticular piece.    The  cost  of  each  piece,  thus  determined,  is  extended 
into  one  column  day  after  day,  and  a  comparison  can  be  made  by 
inspection  of  that  column  of  successive  costs  of  that  specific  opera- 
tion.    If  there  are  variations,  it  can  be  ascertained  which  work- 
man produces  the  work  most  cheaply,  and  such  action  can  be  taken 
in  the  management  of  the  machine  shop  as  is  deemed  proper  to 
bring  these  daily  costs  of  the  operation  down  to  the  lowest  possible 
point,  for  it  is  in  these  ultimate-detail  costs  that  the  total-cost 
reductions  must  be  made.    Inasmuch  as  the  labor  employed  upon 
this  card  belongs  to  the  machine  shop,  to  which  the  product  also 
belongs,  this  card  does  not  go  to  the  transfer  office,  and  is  not 
transferred. 

The  piece-work  card  is  of  standard  size,  printed  upon  blue 
paper,  and  as  shown  by  form  AM,  it  is  identical  in  its  functions 
with  the  stock-work  card,  and  is  used  for  the  manufacture  of  the 


THE  COMPLETE  COST-KEEPER. 


121 


Form  AL. 


STOCK  WORK  CARD. 


Issued . 


tgo. 


To 


Perform  the  following  operation  : — 


On. 


Keep  your  time  on  this  work  and  report  same  below. 

I  certify  that  I  have  properly  completed  above  operation,  and  that 
the  time  consumed  was.' 


Workman. 


Workmen  are  not  to  fill  in  below. 


Number  of  pieces. 
Rate 

Amount, 

Hours, 

Rate, 

Amount 


Approved  : 


Foreman. 


Entered : 


Cost  Clerk. 


Form  AL.     Stock  Work  Card.    6  inches  wide  by  9  inches  high. 


122 


THE  COMPLETE  COST-KEEPER. 


Form  AM. 


PIECE  WORK  CARD. 


Issued . 


.190. 


To. 


Perform  following  operation 


On. 


Keep  your  time  on  this  work  and  report  same  below. 

I  certify  that  I  have  properly  completed  above  operation,  and  that 
the  time  consumed  was 


Workman. 


Workmen  are  not  to  fill  in  below. 


Number  of  pieces. 
Rate 

Amount 

Hours, 

Rate 

Amount, 


Approved : 


Foreman. 


Entered : 


Time  Clerk. 


Noted Cost  Clerk. 


Form  AM,    6  inches  wide  by  9  inches  high.    Blue  paper.    This  form  goes  to  both  time  clerk 
and  cost  clerk.    Form  AL  goes  to  cost  clerk  only. 


THE  COMPLETE  COST-KEEPER.  123 

same  material,  differing  only  in  the  labor  performance,  being  at 
piece  rates.  The  workman  records  the  number  of  hours  consumed 
in  the  perfomance  of  the  operation  upon  the  quantity  of  material 
covered  by  the  card.  It  is  possible,  owing  to  the  form  used,  to 
make  a  comparison  upon  this  card  of  the  difference  between  the 
workman's  time-earnings  at  day- rates  and  piece-ratesj  and  to  rea- 
dily note  time-gains  and  wage-gains  due  to  piece-rates.  When 
the  order  is  completed  the  piece-work  card  goes  to  the  time-clerk, 
and  is  entered  upon  the  piece-work  report,  as  will  be  described 
under  the  head  of  time-keeping.  It  then  passes  to  the  cost-clerk, 
who  enters  it  in  the  labor-detail  book,  giving  actual  cost  at  piece- 
rates,  and  the  probable  cost  at  day-rates. 

In  shops  where  any  pretense  of  system  is  observed,  some  sort 
of  a  ready-reference  list  of  "orders  in  progress"  is  kept.  Such  a 
list  should  be  as  compact  as  possible,  and  it  is  very  important  that 
some  method  should  be  adopted  by  which  the  orders  on  this  ready- 
reference  list  can  be  maintained  readily  in  numerical  sequence. 
There  were  first  used  flat  boards  arranged  with  dovetailed  bat- 
tens so  that  the  order-reference  slips  could  be  slipped  readily  in 
and  out  of  place.  This  was  usable,  but  was  not  so  convenient  as 
was  desirable,  as  the  removal  of  a  finished-order  card  and  the  in- 
sertion of  a  new  order  card  often  forced  the  handling  of  a  con- 
siderable number  of  other  cards  to  obtain  the  arrangement  of  all 
the  cards  in  numerical  sequence  of  order  numbers  again.  Besides 
this,  if  these  order  reference-slips  were  made  in  characters  large 
enough  to  be  readily  noted  in  a  general  view,  which  is  an  essential 
requirement,  the  flat  boards  extended  over  so  much  space  as  to  be 
inconvenient.  As  an  improvement  a  4-sIded  revolving  order  refer- 
ence-slip cabinet  was  devised,  as  shown  in  the  engraving,  which 
holds  38  order  reference-slips  on  a  side,  or  152  reference-slips  in 
all,  each  having  ample  rom  for  large  figures,  and  also  capable  of 
readily  receiving  and  securely  retaining  small  targets  of  different- 
ly-colored cardboard,  indicating  stages  of  progress  by  their  colors, 
so  that  the  order  number  can  be  read  at  a  glance  and  the  colored 
target  slip  gives  instant  information  as  to  state  of  progress.  The 
whole  height  of  the  revolving  part  of  this  cabinet  is  only  about  30 
inches,  so  that  every  part  is  readily  readable  as  it  stands  on  the 
desk,  and  as  it  revolves  freely  and  remains  standing  at  any  point 
the  four  panels  are  equally  accessible. 


f24 


THE  COMPLETE  COST-KEEPER. 


Revolving  Cabinet  for  Reference  Slips. 


The  reference-slips  used  are  of  cardboard,  12  inches  long  x 
16  inches  high,  inscribed  as  shown,  "J^^*-  10,  1898,  33319  B.  Par- 
shall  &  Sill,  2-25  H.  P.  Boilers,"  in  a  single  line.  This  inscription 
gives  first  the  month,  day,  and  year  of  the  order  date,  next  the 
order  number  and  initial  of  department,  then  the  customers  name, 
and  finally  the  work  ordered,  in  this  case  two  25-h.  p.  boilers.  This 
long  narrow  slip  slides  into  a  tin  holder  of  this  section,  which  is 
^  inches  high,  3-16  thick,  12  inches  long,  and  leaves  an  open  space 
at  a,  7-16  wide,  fully  exposing  the  legend  on  the  reference-slip. 
The  right-hand  side  of  each  panel  of  the  cabinet  is  made  open  for 


THE  COMPLETE  COST-KEEPER.  125 

the  whole  height  up  and  down  occupied  by  the  tin  trough-like 
reference-slip  holders,  the  front  vertical  wooden  retaining-strip 
being  fastened  to  the  cabinet  body  at  the  top  and  bottom  extremi- 
ties only.  The  tin  slip-holders  rest  on  each  other,  and  the  refer- 
ence-slip can  be  slipped  out  to  the  right  without  disturbing  any- 
thing else,  or  any  tin  holder  may  be  removed  bodily,  carrj'ing  its 
slip  with  it,  without  disturbing  any  other  holder  except  to  allow 
those  above  to  drop  down  and  close  up  the  space  thus  made  vacant. 
The  resulting  vacancy  at  the  top  of  each  panel  is  filled  by  tins 
brought  over  from  the  bottom  of  the  next  succeeding  panel,  thus 
retaining  numerical  sequence.  This  makes  it  very  easy  to  examine 
the  list  of  orders  in  work,  of  which  as  many  as  152  may  be  exhibit- 
ed at  once  in  this  small  revolving  cabinet,  and  to  remove  any  one 
when  completed.  The  colored  cardboard  targets  are  instantly  in- 
serted, removed  or  exchanged,  and  the  whole  device  is  very  con- 
venient and  satisfactory,  and  inexpensive.  The  cabinet  was  made 
in  the  pattern  shop,  of  cherry,  and  the  tin  holders  were  made  by  a 
common  tinsmith,  being  merely  troughs  of  tin  plate  with  the  sides 
hooked  over  to  produce  the  form  known  to  machine-tool  makers 
as  a  "female  square  dovetail."  At  the  left  of  this  cabinet  in  the 
engraving  there  is  shown  part  of  a  flat  form  of  board  to  receive 
these  same  tin  slip-holders.  It  is  much  higher  than  the  revolving 
cabinet,  and  has  only  a  very  limited  capacity,  and  is  less  conve- 
nient to  use.  The  revolving  cabinet  seems  to  fill  the  conditions 
of  the  ready-reference  order-slip  of  work  in  progress  very  simply, 
and  very  completely. 

When  work  is  completed,  ready  for  inspection,  the  foreman 
of  the  construction  department  notifies  the  assistant  superinten- 
dent, using  form  BH.  The  assistant  superintendent  makes  the  in- 
spection, and  notifies  the  foreman  in  whose  department  the  work 
rests  of  a  favorable  result  by  use  of  form  BflH.  The  foreman 
then  sees  that  the  order  is  made  ready  for  shipment,  and  notifies 
the  assistant  superintendent,  using  form  BHHH,  at  the  same  time 
notifying  the  shipping  department.  These  forms  ensure  prompt 
inspection  and  shipment  through  fixing  on  the  individual  in  fault 
the  responsibility  for  any  delay  which  may  occur. 

Form  BO.  is  a  standard  boiler-packine  list,  and  is  printed  in 
duplicate  with  a  line  of  perforations  between  the  two  forms.  Both 
forms  are  filled,  one  going  to  the  consignee,  and  one  to  the  assis- 
tant superintendent. 


126  THE  COMPLETE  COST-KEEPER. 


Form  BH. 

READY  FOR  INSPECTION. 

Asst.  Superintendent: 

Following  material  on  Order  No is  now 

complete  and  ready  for  inspection  : 


Foreman. 


Form   BHH. 

INSPECTED  AND  APPROVED. 

Foreman : 

Following  material  on  Order  No 

is  inspected  and  approved  : 


Asst.  Superintendent. 


Form    BHHH. 

READY  FOR  SHIPMENT. 
(This  must  be  made  at  same  time  as  shipping  memo.) 

190. . 

Asst.  Superintendent: 

Order  No is  now  ready  for  shipment. 

Am  now  notifying  Shipping  Dep't. 

<  

Foreman. 


Forms  BH,  BHH,  BHHH.     Size,  5)^  inches  wide  by  2%  inches  wide. 


THE  COMPLETE  COST-KEEPER.  127 

Form  BR,  Cost  of  boiler-shop  labor.  This  form  is  used  for 
recording  estimate  detail  and  actual  detail  boiler-construction  costs. 
The  actual-costs  column  is  made  from  detail  labor-time  figures 
supplied  by  the  foreman  of  the  boiler  shop. 

Form  AX.    Tank  builder's  weekly  report.     Field  work. 

A  large  item  of  the  boiler-shop  labor  consits  of  "field"  or  out- 
side work  in  tank  and  penstock  building.  Both  weekly  and  daily 
detailed-labor  report  forms  are  shown.  The  weekly  report  has  a 
docket  form  printed  on  the  back,  in  the  upper  right-hand  comer, 
which  is  reproduced  on  the  face  to  save  room. 

Form  AXX.  Front  and  back,  show  two  sides  of  the  daily 
report  form  complete. 

Form  AI,  "Consignment  Inquiry"  is  used  between  the  works 
and  branch  departments  in  other  localities,  as  is  indicated  by  its 
text.  Size  5f  inches  wide  x  8^  inches  high.  This  form  is  returned 
from  the  branch  house,  with  bad  order  memorandum,  if  any,  on 
the  back,  signed  by  the  branch  department  foreman. 

SYNOPSIS.  , 

LIST    OF    FORMS    COMPLETE. 

Production-Order  Record-Book. 
Production  for  Horizontal  Tubular  Boilers. 
Boiler-Cost  Account. 
Boiler-Cost  Account, 
Boiler-Cost  Account. 
Boiler-Shop  General  Production-Order. 
Boiler-Shop  Details. 
Boiler-Shop  Summary. 
Boiler-Shop  Summary  continued. 
Boiler- Shop  Steam-Engine  Production-Order. 
Steam-Engine  Summary. 
Steam-Engine  Summary  continued. 
Steam-Engine  Summary  continued. 
Gas-Engine  Production-Order. 
Summary. 

Summary  continued. 
Summary  Miscellaneous. 
Machine- Shop  General  Production-Order. 


Form  A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

K. 

L. 

M. 

N. 

0. 

P. 

Q- 

R. 

128 


THE  COMPLETE  COST-KEEPER. 


Form  BR. 

COST  OF  BOILER  SHOP  LABOR  , 

On  Order  No of 

for 

Finished if,o . .  Fill  out  all  Details. 


Operation. 

Estimate. 

Cost. 

Laying  out Sheets 

Flanging Heads  by  Machine 

1 

Flanging Sheets  by  Machine 

Flanging Heads  by  Hand 

Flanging. . . .         Sheets  by  Hand   

Punching Sheets  on  Gang 

Punching.            .Sheets  on  Tables   etc   

Rolling.             .   .Sheets 

Planing Sheets 

Bevelling     ....   Sheets 

Fitting  up Sheets 

....  Rivets Dia.  by  Hand 

....  Rivets Dia.  by  Hand 

Rivets Dia.  by  Hand ' 

. , .  Rivets Dia.  by  Machine.  .• ' 

....  Rivets Dia.  by  Machine ^ . . 

j 
. .  Rivets Dia.  by  Machine 

Calking Feet  by  Hand ! 

Calking Feet  by  Machine ' 

Testting 

Painting 

Total 

■^^ 

^^" 

Form  BR.     Size  s}4  ios.  wide  X  8^  ins,  high. 


THE  COMPLETE  COST-KEEPER.  129 


s. 

Details. 

T. 

Summary. 

U. 

Summary  continued. 

V. 

Foundry  Production-Order. 

w. 

Smithy  Production-Order. 

X. 

Summary. 

Y. 

Summary  continued. 

AA. 

Black  Cost-Cards. 

AB. 

Green  Cost-Cards. 

AC. 

Pattern  Cards. 

AD. 

Expense  Cards. 

AE. 

Duplicate  Cost-Cards. 

AF. 

Plate-Order  Card. 

AG. 

Card-Register  Book. 

AH. 

Card-Transfer  Book. 

AI. 

Department  Inquiry. 

• 

AJ. 

Cost-per-pound  Book.    L.  H. 

Page. 

AJJ. 

Cost-per-pound  Book.    R.  H. 

Page. 

AAJ. 

Labor-Detail  Book. 

AK, 

Transfer  Card. 

AL. 

Stock- work  Card. 

AM. 

Piece-Work  Card. 

AN. 

Foundry  Report-Card,  Front. 

AO. 

Foundry  Report'Book,  Back. 

AP. 

Workman's  Gate-Record. 

AQ. 

Time  Sheet. 

AR. 

Claim  for  Over  and  Half-Time. 

AS. 

Piece-Work. 

AAS. 

Over-time  and  Half-time. 

AT. 

Pay-Roll  Book. 

AU. 

Cut-page  Ledger. 

AAU. 

Bills-Payable  Record-Page  in 

Ledger. 

AV. 

Cash  Book. 

AW. 

Vouchers; 

AAW 

.  Voucher  Book.    L.  H.  Page. 

AAX. 

Voucher  Book.    R.  H.  Page. 

AY. 

Bills-Receivable  Book.     L.  H 

•  Page. 

AZ. 

Bills-Receivable  Book.    R.  H. 

Page. 

BA. 

Distribution  of  Sales.    L.  H.  ] 

Page. 

I30 


THE  COMPLETE  COST-KEEPER. 


Form  AI. 

BRANCH  DEPARTMENT  INQUIRV. 

W.  H.  No 

Stores  Room 190. . 

To Dep't. 

Have  you  received  following  goods  in  goqd  order  : 

• 

•  ■ 

_ 

From , 

Shipped 190 

As 

Car  No Initials 

Warehouse  Clerk. 
Above  goods  received  in  good  order,  except  as  noted  on  back,    • 

Foreman. 

Branch  Department  Inquiry.      Form  AI.      sJi  ins.  wide  by  8)^  ins.  high. 


THE  COMPLETE  COST-KEEPER. 


131 


BB. 
BC. 
BD. 
BE. 
BF. 
BG. 
BH. 
BI. 
BJ. 
BK. 
BL. 
BM. 
BN. 
BO. 
BP. 

BQ. 
BR. 


Distribution  of  Sales.    R.  H.  Page. 
Freight  Distribution-Book.    L.  H.  Page. 
Freight  Distribution-Book.    R.  H.  Page. 
Purchase  Distribution-Book.    L.  H.  Page. 
Purchase  Distribution-Book. 
Incoming  Invoices. 


R.  H.  Page. 


Sundry  Commission-Sales. 

Settlement.     Commissions. 

Commission-Sales  Statement. 

Commission  Statement. 

Record  of  Machinery  Consigned. 

Notice  to  Order  Department. 

Suspense  Ledger. 

Packing  List. 

Cost  of  Boiler- Shop  Labor. 
The  foundry  report-card  is  printed  on  cardboard  of  standard 
card-index  size,  3  inches  x  5  inches,  and  is  filed  in  a  card-index 
cabinet.  The  card  is  shown  by  forms  AN  and  AO.  This  card  is 
turned  in  from  the  foundry  each  morning  for  the  preceding  day*.^ 
heat.  The  cards  are  numbered  consecutively  for  the  purpose  of 
showing  that  cards  are  omitted  only  upon  the  days  when  no  work 
is  performed.  What  is  designated  upon  the  face  of  the  card  as 
"foundry  stock"  is  such  material  as  the  foundry  properly  may  sell ; 
that  is,  rough  castings  such  as  standard  grate-bars,  or  similar 
goods^hat  are  sold  without  any  finishing.  "  M.  S.  stock"  refers  to 
rough  castings  which  are  made  on  standing  orders  for  the  stand- 
ing-order production  of  the  machine  shop.  "B.  S.  slock"  stands 
for  the  same  class  of  material  with  reference  to  the  boiler  shop. 
The  amounts  of  castings  made  under  both  of  these  headings  arc 
transferred  daily  in  the  transfer  office  upon  the  transfer  book  the 
same  as  though  this  report  were  made  on  any  of  the  other  kinds 
of  cards  used  for  the  purpose  of  transferring  material;  also  the 
total  amount  of  brass  castings  reported  for  the  day  is  immediately 
transferred  to  the  machine  shop.  The  material  under  the  head  of 
"orders,"  consists  of  all  castings  made  on  production-orders  or 
sub-production-orders.  The  "W.  H."  number  upon  the  face  of  the 
card  indicates  the  number  of  the  line  in  the  transfer  book  upon 


132 


THE  COMPLETE  COST-KEEPER. 


Form  AN. 

Foundry  Report  No.  1447. 


For. 


190. 


FOUNDRY  STOCK  :  All  material  not  mentioned  below, 
made  up  for  stock 

M.  S.  STOCK  ■  Oil  engine  castings,  Horizontal  engines 
up  to  and  including  11)^x12  safety  valve  castings. . 

B.  S.  STOCK:  Oil  well  hand  hole  yokes  and  plates,  oil 
well  grate  bars,  oil  well  safety  valve  balls 


ORDERS  :  All  castings  made  on  cards  or  orders. 
Brass Total  good  iron  castings 


Light  up . . 
Blast  on . . 
First  iron. 
Dropped  . 
Gauge .... 


(Bad  Castings.")     METERS  AT  7  A.  M. 
1 i. 6. 


o 


Face   of  Foundry    Report  Card.     Form  AN.    Standard    card  index  size,  s  inches  wide  by 
3  inches  hipjh.     Printed  on  face  as  shown. 


Form  AO. 

Charge. 

Coke. 

Shot. 

Sprues. 

Refuse. 

Heavy 
Scrap. 

Light 
Scrap. 

A 

B 

C 

Bed 

2nd  .... 

^rd. 

I 

4th 

6th 

6th 

7th 

« 



Total 

Iron  mel 

ted                Ire 

)n  to  Fue 

1 

Weighed 

I  back. 

'  A 

Good  Castings. 

0      I 

Loss              . . . 

c 

•1 

Backof  Foundry  Report  Card.     Form  AO.     Standard  card  index  size. 


THE  COMPLETE  COST-KEEPER.  133 

which  the  card  is  entered.  The  record  at  the  left  of  the  face  side 
of  the  card  gives  the  log  of  the  melt ;  that  is,  time  of  cupola  light- 
ing and  so  on.  The  record  at  the  right  under  the  head  of  "Me- 
ters," is  the  reading  of  the  gas  meters  which  measure  the  fuel 
supply  for  the  steam  boiler  running  into  the  foundry,  as  natural 
gas  is  used  for  fuel.  In  the  center  is  placed  the  number  of  pounds 
of  bad  castings  in  the  melt.  On  the  reverse  side  will  be  found  the 
various  charges  and  the  quantity  of  material  used  in  each  charge, 
together  with  the  total.  The  letters  "A,  B,  C"  in  the  three  columns 
at  the  right-hand  side  are  for  the  various  grades  of  pig  iron  used, 
and  opposite  the  corresponding  reference  letters  below  are  written 
the  names  of  the  several  brands  used.  The  other  information  em- 
braced upon  this  side  of  the  card  is  the  quantity  of  iron  melted, 
the  quantity  that  is  weighed  back,  that  is,  that  was  not  converted 
into  castings,  the  total  amount  of  good  castings,  and  the  loss  of  the 
heat ;  also  the  ratio  of  iron  to  fuel. 

Labor-Record  and  Pay  Roll. 

Brass  checks,  each  stamped  with  a  workman's  number,  are 
used  to  obtain  the  workman's  gate-record.  There  is  a  numbered 
rack  or  check-board  in  the  gatekeeper's  office  in  which  these  checks 
are  stuck  each  under  its  own  number.  This  check-board  differs 
from  the  usual  construction  in  being  arranged  with  inclined  hori- 
zontal strips,  making  long  narrow  shelves  sloping  downward,  with 
a  semi-circular  cut  made  in  the  back  of  the  board  at  the  inner  and 
lower  edge  of  the  shelf,  so  that  the  check  can  be  very  quickly  slip- 
ped into  its  place,  under  its  number  in  the  brass  facing  strips  which 
form  the  front  edge  of  the  shelves ;  the  slanting  shelf  and  the  cut 
in  the  rack-back  serve,  together,  to  hold  the  check  securely  in  posi- 
tion, and  at  the  same  time  permit  the  check  to  be  handled  much 
more  rapidly  than  is  possible  where  the  checks  are  hung  on  hooks, 
in  the  usual  manner.  The  check-board  is  hinged  to  the  right-hand 
side  of  the  check-window  casing,  and  is  fitted  with  a  hook  at  the 
bottom,  by  means  of  which  the  check-board  can  be  fastened,  back 
out  of  the  way,  against  the  wall,  or  may  be  held  at  right  angles 
to  the  wall,  as  is  most  convenient  when  filling  the  rack  from  the 
check-box.  The  construction  of  this  check-board  can  be  under- 
stood from  this  description  and  the  engraving  given  herewith. 


134 


THE  COMPLETE  COST-KEEPER. 


Check  Board,  Window,  and  Box. 


THE  COMPLETE  COST-KEEPER.  135 

As  the  workman  enters  the  gate  his  brass  check  is  taken  from 
the  rack  and  handed  to  him.  This  he  retains  while  in  the  works. 
Upon  leaving  the  works  he  deposits  his  check  at  the  window  as  he 
passes  out,  on  a  broad  window-sill  inside  of  which  a  box  is  hung, 
as  shown  in  the  engraving.  Each  workman  as  he  passes  out  lays 
his  check  upon  the  window-sill  and  the  gatekeeper  sweeps  it  into 
the  box. 

This  can  be  done  very  rapidly  so  that  there  is  no  delay  in  let- 
ting the  workmen  out.  During  the  forenoon  the  gatekeeper  ex- 
amines his  rack  and  checks  the  workmen  in  from  the  check-board, 
on  form  AP  for  the  machine  shop,  and  on  similar  forms  for  the 
other  departments.  These  forms  are  SJ  inches  x  13I  inches,  and 
ruled  as  shown.  This  is  easily  done,  as  the  board  was  full  of 
checks  before  the  men  commenced  to  come  in  the  morning,  and 
the  vacancies  upon  the  board  during  the  forenoon  show  precisely 
what  men  have  taken  their  checks  and  passed  in.  If  a  man  is  late, 
instead  of  a  check  mark  being  put  opposite  his  name  the  actual 
time  of  his  arrival  is  inserted  in  red  ink,  so  that  it  will  be  con- 
spicuous. After  checking  off  the  arrival  of  the  men,  the  board  is 
filled  with  a  set  of  duplicate  checks  ready  for  the  afternoon  admit- 
tance. The  checks  that  are  turned  in  as  the  men  leave  the  works 
are  kept  in  the  box  and  during  the  afternoon  they  are  entered  in 
the  first  "out"  column,  completing  the  time  record  for  the  first  half 
of  the  day.  The  same  process  is  followed  for  the  afternoon.  If 
a  man  reaches  the  works  prior  to  the  commencing  hour,  no  record 
is  made  as  to  the  exact  time  that  he  comes,  as  that  is  entirely 
immaterial  so  long  as  he  is  in  the  works  by  the  proper  time.  It  is 
only  the  late  comers  whose  exact  time  is  noted.  If  a  man  does 
not  come  in  at  all  an  "X"  is  put  opposite  his  number.  If  a  man 
is  late  one.  two,  or  three  minutes  he  is  not  docked  for  it,  but  it  's 
recorded  in  an  alphabetical  book,  under  his  name,  and  this  book  is 
examined  periodically  by  the  superintendent.  If  a  man  is  found 
to  be  habitually  late,  such  steps  are  taken  as  will  induce  prompt- 
ness. 

These  forms  after  being  filled  out  by  the  gatekeeper  are  sent 
to  the  respective  foremen  and  are  checked  with  the  tally  of  the 
department  time  taken  in  their  departments.  Inasmuch  as  in  the 
machine  shop  the  time  kept  by  the  workmen  is  turned  in  only  once 
a  week,  the  time  is  entered  upon  the  time  book  from  these  sheets. 


136 


THE  COMPLETE  COST-KEEPER. 


and  is  checked  up  by  the  time  claimed  on  form  AQ,  at  the  end 
of  the  week.  If  any  discrepancy  exists  the  time-clerk  is  expected 
to  investigate  and  reconcile  the  records. 

A  time  book,  bi-monthly,  is  kept  in  each  department,  of  ordin- 
ary stock  ruling,  which  is  turned  over  to  the  book-keeper  each  two 
weeks  in  order  to  make  up  the  pay-roll.  In  the  machine  shop  each 
man  is  provided  with  sheets,  bound  in  book  form,  and  perforated 
at  the  left-hand  side,  upon  which  he  keeps  his  time  in  detail  for 


Form  AP. 


WORKMAN'S  GATE  RECORD. 
Warren,  Pa., 


.190. 


To  the  Foreman  of  Machine  Shop  : 

The  following  is  a  memorandum  of  time  recorded  for  your  men 
this  day.  Your  attention  is  called  to  shortages  that  you  may  compare 
with  your  time  record. 


No. 

In. 

Out 

In. 

Out 

5 

No. 
135 

to 

168 

In. 



Out 

In. 

Out 

t    1 

§  1 

No. 

169 
to 
202 

In. 

Out 

In. 

Out 

a 

0 

lOI 

i 

to 

.  .  . 

134 

Form  AP,     Workman's  Gate  Record.     8)^  inches  wide  by  12%  inches 
high.     Similar  forms  for  all  departments,  headed  for  foreman  of  each. 

one  week.    This  sheet,  form  AQ,  is  7^  inches  wide  x  8  inches  high, 
and  printed  upon  yellow  manila  paper. 

At  the  end  of  each  week  this  form  is  passed  to  the  department 
time-clerk  and  is  checked  up  with  the  time-book,  as  stated  above. 
All  the  workmen's  time,  during  the  regular  hours  of  employmenr, 
whether  on  piece-work  or  not,  is  recorded  upon  this  sheet,  and  paid 
for.  Over-time  andhalf-time  are  added  later,  and  the  amount  of 
time  on  piece-work  is  determined  by  form  AM,  and  treated  as 
described  below.  This  form  AQ  is  used  only  in  the  machine  shop. 
In  the  other  departments  the  time  is  kept  by  the  foreman  or  the 
time-clerk. 


THE  COMPLETE  COST-KEEPER. 


137, 


Form  AQ. 

TIME  SHEET,  for  week  ending. 190.. 

Rate Name, No 

Order. 

Work. 

Hours.          Rate. 

!                             ! 

Amount. 

1 

. 

! 

1 

i 

1 

i 

1 

\                     ^f                1 

|i         ! 

1         '         ' 

1 

i                                          i'         '         ' 

1 
1 

' 

1 
1 

\ 

1 

1 

1 

1 

1        1 

1 

1              1 

1 

II      i 



li     1 

1 



1 

' 

,, 

li       1 

II       1 

Total  for  week.         -        -         - 

i 

Form  AQ.     ^%  inches  wide  by  8  inches  high,  on  yellow  manila  paper. 


138  THE  COMPLETE  COST-KEEPER. 

Form  AR  is  8|  inches  wide  x  3^  inches  high,  and  is  printed 
upon  pink  paper.  Each  workman  who  has  made  over-time  or  half- 
time  turns  in  one  of  these  "AR"  cards  every  day. 

Form  AS  is  a  form  of  same  size  as  AQ,  and  is  bound  in 
books  the  same  way,  but  it  is  printed  upon  blue  paper,  and  is  kept 
by  the  department  timekeeper.  This  card  is  made  for  two  weeks 
with  one  line  for  each  working  day.  Under  the  head  of  "piece- 
work" the  workman  is  credited  with  all  his  piece-work  as  entered 
on  form  AL.     In  the  "less  time-consumed"  column  the  time  re- 


Form  AR. 

S.  W.  &  Co 
On 

CLAIM  FOR  OVER  AND  HALF  TIME. 

Warren,  Pa., 190 . . 

I  claim  OVERTIME  for  this  day  as  follows : 
Time 

On 

I  claim  HALF  TIME  for  this  day  as  follows : 
Time  

0.  K 

Entered 

Foreman.                    

Workman. 
Time  Clerk. 

Form  AR.     83^  inches  wide  by  2)}4  inches  high.     Pink  paper. 

corded  on  form  AI  as  being  consumed  in  the  operations  involved, 
is  deducted,  for  the  reason  that  upon  form  AQ  and  AR  are  entered 
all  the  time  that  the  man  has  worked,  no  matter  upon  what  work ; 
either  piece-work  or  not.  The  object  of  this  procedure  is  to  pro- 
duce such  records  in  the  column  headed  "net,"  that  the  superin- 
tendent can  see  at  a  glance  precisely  what  amount  the  workman 
has  made  over  and  above  his  regular  time  rate,  as  stated  in  the 
description  of  the  stock-work  card.  This  card  is  entered  under 
the  heading  of  "piece-work  and  over-time"  on  the  pay  roll,  form 
AT. 

Form  AAS  is  same  size  as  form  AQ,  and  bound  in  books  the 
same  way,  but  is  printed  on  pink  paper.    This  is  also  made  for 


THE  COMPLETE  COST-KEEPER. 


139 


Form  AS. 


No. 


PIECE  WORK. 


Report  of  Piece  Work  of 

For  two  weeks  ending 190. 


Dav. 

Piece  Work.                             , 

Less  Time  Consuni-  U.  1 

Net. 

l>escripti'>n. 

Rate 

Amount  r 

Hours. 

Rate  i 

Amount 

M 

\  .  . 

T 

w 



T 

i 

F 

J 

1 

S 

1 

M 

: 

T 



■   ! 

\ 

W 

1 

T 

. 

F 

S 

.  .  . ! 

Total 

The  above  is  in  addition  to  regular  time  already  credited. 

Foreman. 


Form  AS.      ^}4  inches  wide  by  8>^  inches  high.      Printed  on  blue  paper. 


I40 


THE  COMPLETE  COST-KEEPER. 


Form 
No. . . . 

AAS.          OVER-TIME 

AND  ] 

HALF-TIME. 

% 

Report  of  Over-Time  and  Half-Time  of 

For  two  weeks  ending 

190. . 

_ 

Day. 

Work  Done. 

Ovei-Time. 

Half-Time. 

Total. 

Hours. 

Rate 

Amount 

Hours 
Work. 

% 

Rate 

Amouut 

M 

^ 

^ 

T 

1 

W 

T    - 

1 

F 

1 

S 

M 

1 

!*■•• 

. 

T 

— 

W 

T 



— 

F 

S 

Total 

* 

The  above  is  in  addition  to  regular  ti 

me  already  credited. 

Foreman. 

Form  AAS.     7}^  .inches  wide  by  i)^  inches  high.     Printed  on  pink  paper. 


THE  COMPLETE  COST-KEEPER. 


141 


two  weeks,  and  receives  the 
records  of  over-time  and  half- 
time  as  claimed  on  form  AR, 
and  at  the  end  of  two  weeks 
is  entered  in  the  proper  col- 
umn of  the  pay-roll,  form  AT. 

The  pay-roll  book  has 
pages  13  inches  wide  x  16 
inches  high,  and  is  ruled  as 
shown  by  form  AT. 

The  pay-roll  is  made  out 
by  the  general  book-keeper 
upon  the  form  as  shown.  The 
credit  to  each  man  is  shown 
on  the  left-hand  side,  and  the 
debit  on  the  right-hand  side 
of  the  same  page.  The  first 
column  gives  the  pay  num- 
ber, which  is  the  number  of 
the  check  drawn  upon  the 
bank  in  payment  of  the  man's 
wages.  Next  follows  his 
name  and  his  shop  number. 
Then  comes  his  regular  time, 
that  is,  if  he  is  a  day  man  it 
will  be  the  total  hours-work 
for  the  two  weeks  period 
from  7.00  A.  M.  until  6.00 
p.    M. 

Then  follows  half-time 
and  over- time,  form  AAS. 
The  next  column  is  for  piece- 
work made.  The  half-time 
is  one-half  time  on  a  second 
tool  ;  the  over-time  is  for  any 
time  in  excess  of  regular  time; 
the  piece-work  is  the  net 
amount  earned  for  number  of 


§ 

>. 

1— 1 
PQ 

Q 

^c2 

« 

c 

0 

s 
-0 

V 

C 

H 

3 

e 

<  1 

E 

a 
Q 

5i 
^5 

u 
0 

0 

V 

= 

3 
C 

E 
< 

0 

c 

5 

a3 

B 
H 

X 

3 
0 

E 
< 

c 

4J 
OS 

< 

Ah 

Q 

3 
0 

1) 

E 

u 
a 

3 
St 
V 

a 
% 
E 
< 

CO 

0: 

t 

6 
!5 

:    "c 
:    ^ 

ai 

0 

u 

«o                  0 

CO                  CO 

o 

O, 

M 
O 
O 


0^ 


bO 


142  THE  COMPLETE  COST-KEEPER. 

pieces  made  at  the  established  rate,  less  a  deduction  for  the  amount 
of  time  consumed  at  the  man's  regular  day  rate,  for  which  he  has 
been  paid  under  head  of  regular  time.  If  his  piece-work  should 
amount  to  less  than  the  time  consumed  at  his  regular  work,  a  de- 
duction is  made  of  a  corresponding  amount  on  the  right-hand  side 
of  the  page  under  the  heading  of  "deductions."  The  half-time  i.s 
for  one-half  the  time  occupied  in  running  a  second  tool.  The 
column  of  "total  credit"  means  the  gross  amount  of  pay  coming  to 
the  individual.  Occasionally,  money  is  paid  to  employees  between 
pay-days,  or  goods  may  be  furnished  to  them.  In  these  cases  a  de- 
duction is  made  under  the  head  of  "deductions,"  and  the  net 
amount  carried  into  the  column  headed  "paid  on  pay-day."  This 
is  the  amount  of  the  pay-roll  ch'^ck  issued  under  date  of  the  last 
day  of  the  pay  period,  and  numbered  with  the  corresponding 
number  on  the  opposite  end  of  the  line.  A  separate  account  called 
the  "pay-roll  account"  is  kept  at  one  of  the  local  banks,  and  an 
amount  equal  to  the  total  amount  of  the  pay-roll  checks  is  deposit- 
ed to  the  credit  of  the  pay-roll  account  and  charged  to  that  account 
on  the  ledger  each  pay-day.  The  individual  checks  are  credited 
to  that  account  upon  pay-day  and  charged  to  "labor-paid"  account, 
as  described  under  "exposition  of  accounting  system."  The  gro3s 
deductions  are  also  charged  to  the  "labor-paid"  account  and  cre- 
dited to  the  proper  accounts.  Thus,  the  two  charges  to  "labor- 
paid*'  account  equal  the  amount  in  the  "total-credit  column."  The 
amount  in  the  "total-credit  column"  is  credited  to  "labor-payable" 
account,  as  elsewhere  described  and  charged  to  sundry  accounts, 
as  per  list  under  head  of  "distribution  of  pay-roll"  in  exposition 
of  accounting  system. 

It  will  be  observed  that  none  of  the  time  and  pay-roll  items 
depend  upon  entries  made  by  a  single  person ;  in  all  cases  at  least 
two  original  records  are  made,  which  are  checked  against  each 
other  and  made  to  agree.  This  double  record  calls  for  added  form 
room,  but  makes  errors  unlikely. 

Operation  of  Cost  System. 

The  production-order  is  filled  out  from  contracts  or  custom- 
ers' orders  by  the  assistant  superintendent,  who  has  charge  of  the 
details  of  all  orders  from  the  tim'!  they  are  received  ttntil  they 
are  shipped.     The  contracts  or  customers'  orders  are  first  ap- 


THE  COMPLETE  COST-KEEPER.  143 

proved  by  the  superintendent ;  the  orders  are  then  turned  over  to 
the  manager  of  the  sales  department  for  his  information,  and  by 
him  passed  on  to  the  assistant  superintendent,  who  makes  all  pro- 
duction-orders. After  the  production-order  is  entered,  its  first 
page  is  copied  in  a  press-copying  book  for  permanent  record,  and 
then,  together  with  all  the  data  and  information  connected  with 
the  same  in  the  form  of  correspondence,  contract,  etc.,  is  sent  to- 
the  head  draughtsman,  who  carefully  examines  the  specifications^ 
and  makes  such  necessary  drawings  as  will  be  required  to  give 
proper  interpretation  to  the  specifications.  When  the  drawings  are 
finished  the  head  draughtsman  stamps  upon  the  face  of  the  pro- 
duction-order "drawings  ready,"  and  it  is  then  turned  back  to  the 
assistant  superintendent.  Prior,  however,  to  the  return  to  the 
assistant  superintendent  the  cost-cards,  or  sub-production-orders 
are  made  out  by  the  head  draughtsman  and  are  recorded  by  the 
supply  clerk  in  the  card  register,  as  hereafter  noted.  If  suitable 
rough  stores  are  not  on  hand  in  the  storeroom,  the  production- 
order  is  held  by  the  assistant  superintendent  until  the  material, 
such  as  steel  plate,  etc.,  which  is  purchased  outside,  arrives.  It  is 
then  passed  to  the  foreman  of  the  department  who  is  to  manufac- 
ture the  goods,  and  he  proceeds  to  construct  the  work.  In  the  case 
of  a  small  order  requiring  no  drawings,  the  assistant  superinten- 
dent sends  the  order  direct  to  the  foreman  of  the  department  which 
is  to  fill  it,  and  in  that  case  the  foreman  or  his  clerk  makes  out  the 
cost-cards. 

After  the  cards  are  issued,  either  by  the  head  draughtsman 
or  by  the  department  foreman,  as  the  case  may  be,  they  are  imme- 
diately sent  to  the  supply  clerk,  who  vitalizes  them  by  recording 
them  in  the  card  register  and  placing  upon  each  its  specific  serial 
number.  He  then  sends  the  card  to  the  first  department  having 
material  to  furnish  or  work  to  perform  on  it  and  enters  in  his 
register  the  date  when  the  card  was  sent  10  that  department.  As^ 
for  instance,  should  a  card  come  from  the  boiler  shop  for  a  water - 
column  requiring  a  casting,  and  machine-shop  work  on  that  cast- 
ing, the  card  would  go  first  to  the  foundry.  The  date  of  sending 
to  the  foundry  would  be  entered  in  the  proper  column.  After 
casting  the  water-column  the  foundryman  would  note  on  the  back 
of  the  card  the  number  of  pounds  of  casting,  and  return  the  card 
to  the  supply  clerk.    Then  the  card  would  be  again  entered  upon 


144  THE  COMPLETE  COST-KEEPER. 

the  register  as  received  back  from  the  foundry  on  such  and  such  a 
date,  and  then  would  be  charged  to  the  machine  shop  on  the  same 
date  and  sent  into  that  department  for  the  machine  work.  As  soon 
as  the  machine  work  as  finished  the  card  would  be  returned  to  the 
supply  clerk,  who  would  note  in  the  proper  column  the  date  upon 
which  it  came  back  from  the  machine  shop,  and  would  also  enter 
in  the  column  headed  "returned"  the  date  on  which  he  returned 
the  same  to  the  department  issuing  it.  Before  doing  this  he  would 
stamp  upon  the  card  "material  ready"  and  affix  the  date  of  return. 
The  card  then  would  go  to  the  foreman  of  the  boiler  shop  whence 
it  issued,  and  remain  there  until  he  was  ready  for  the  material. 
The  water-column  itself  would  go  to  the  store  room  and  lie  there 
until  sent  for,  by  the  boiler-shop  foreman  in  this  case.  When 
ready  to  use  the  material  the  foreman  stamps  upon  the  card  "please 
furnish  at  once,"  and  sends  it  to  the  storeroom.  If  the  material  is 
of  such  a  size  that  the  man  who  carries  the  card  can  carry  it  back 
he  brings  the  material  and  card  with  him.  If  not,  the  storeroom 
gang  deliver  the  material  by  the  established  delivery  methods, 
usually  by  the  locomotive  yard-crane,  and  the  card  is  returned  to 
the  foreman  at  the  same  time. 

The  passage  of  these  cards  from  one  department  to  another 
is  affected  by  means  of  a  messenger  service,  in  which  the  office 
boy  makes  the  rounds  of  the  entire  works  six  times  a  day,  trans- 
ferring all  papers  that  are  for  interchange  from  and  to  "post- 
office"  boxes  placed  at  each  foreman's  desk,  so  that  no  card  is 
likely  to  lie  waiting  for  delivery  longer  than  one  and  one-half 
hours  at  any  point.  A  hurry-up  matter  is  sent  by  special  messen- 
gev,  but  ordinarily  the  regular  trips  suffice. 

Before  sending  the  card  back  to  the  department  issuing  it, 
the  supply  clerk  computes  the  money  value  of  the  labor  and  mate- 
rial represented  by  the  card,  extends  same  in  the  proper  column  on 
the  card  itself,  and  makes  the  financial  transfer  in  the  transfer 
books  as  outlined  above. 

All  these  cards,  as  fast  as  filled,  together  with  the  production- 
order,  lie  in  the  department  filling  the  production-order  until  the 
order  is  filled  and  ready  to  ship.  When  the  order  is  completed  all 
the  cards  are  placed  on  the  inside  of  the  production-order  and  sent 
back  to  the  supply  clerk.  The  supply  clerk  takes  the  order  and 
•enters  in  the  proper  column  on  the  inside  of  the  production-order 


THE  COMPLETE  COST-KEEPER.  145 

itself,  and  opposite  to  each  item  that  was  registered  when  the  car.i 
was  issued,  the  money  value  of  same,  taken  from  the  card  itself. 
These  he  foots  up,  thus  obtaining  the  total  flat  cost  of  the  job  as. 
soon  as  the  job  is  completed. 

The  value  of  this  system  depends  in  a  large  measure  upon  the 
judicious  issuing  of  the  cards.  The  theory  upon  which  the  me- 
thods here  shown  are  founded,  is  that  the  articles  represented  by 
a  production-order  are  to  be  sub-divided  and  analyzed  to  their 
lowest  terms  and  then  the  lowest  term  is  represented  by  a  card. 
For  instance,  in  building  an  engine  there  would  be  one  card  for 
each  of  the  component  parts;  one  for  the  fly  wheel,  one  for  the 
pulley,  one  for  the  crank  shaft,  one  for  the  bed  complete,  one  for 
the  cylinder,  one  for  the  cylinder  head,  one  for  the  valve,  one  for 
the  steam-chest  cover,  etc.  If  building  six  engines  on  the  same 
order,  one  card  would  represent  six  of  each  of  the  pieces  above, 
the  division  being  made  upon  the  kind  of  piece  and  not  the  number 
of  that  kind,  as  all  pieces  of  that  one  kind  would  be  made  upon 
one  card.  This  gives  advantages  in  two  ways:  First,  it  enables 
the  card  to  follow  the  pieces  that  it  represents  clear  through  the 
shops,  going  to  every  workman  who  notes  labor  on  these  pieces ; 
second,  it  gives  the  cost  in  detail,  so  that  when  a  similar  job  comes 
up,  an  estimate  of  cost  may  be  made,  even  though  there  is  some 
variation  in  minor  detail,  by  means  of  appropriate  deductions  and 
additions,  which  will  be  very  much  closer  than  mere  guesswork. 

After  a  production-order  has  had  its  total  cost  determined,  it 
passes  to  the  cost-clerk,  who  records  it  upon  the  cost-per-pound 
book,  form  AJ,  and  also  goes  through  the  details  of  the  sub-pro- 
duction-orders filed  inside  the  folio  and  takes  off  all  information 
of  probable  future  use,  and  enters  such  items  in  the  labor-detail 
book,  form  AAJ. 

From  the  cost-clerk  the  completed  order  goes  to  the  sales  de- 
partment where  the  selling  price  is  entered  upon  its  face,  together 
with  the  terms  of  sale,  and  then  goes  to  the  book-keeper  and  is 
entered  upon  the  ledger.  At  this  point  it  becomes  an  item  of  the 
financial  accounting,  and  after  being  entered  upon  the  ledger,  and 
having  the  cost  and  selling  price  entered  upon  the  sales  distri- 
bution book  and  upon  the  order  record  book,  it  is  filed  away  with 
all  the  other  production-orders,  in  boxes  of  suitable  size,  alphabeti- 
cally arranged  and  resting  in  pigeon  holes  in  a  large  fire-proof 


i 

146  THE  COMPLETE  COST-KEEPER. 

vault  opening  from  the  counting  room,  easily  accesible  at  any  time 
for  reference.  In  an  experience  in  the  use  of  the  system,  ex- 
tending over  a  period  of  seven  or  eight  years,  not  one  order  has 
been  permanently  mislaid.  ^  The  order  record-book,  form  A,  has 
its  first  four  columns  filled  in  from  the  tissue  paper  copy  book  in. 
which  each  order  is  copied.  After  such  entry,  as  stated  previous- 
ly, the  right-hand  column  of  that  book  is  a  constant  preventive  of 
the  filing  of  orders  without  proper  entry  upon  the  general  ledger. 

The  Commercial  Accounting. 

The  following  books  are  used  in  tne  commercial  accounting': 
General  Ledger,  Cash  Book,  Journal,  Voucher  Book,  Bills- 
Receivable  Book,  Sales  Distribution  Book,  Freight  Distribution- 
Book,  Purchase  Distribution-Book,  Incoming  Invoices,  Vouchers, 
Commission-Sales  Book,  Commission-Sales  Statement,  Commis- 
sion Statement,  Consignment  Book,  Shipping  Memorandum,  Ex- 
pense Ledger. 

General  Ledger.  The  general  ledger  is  shown  by  form 
AV.  It  is  of  the  cut-leaf  type,  divided  into  two  volumes; 
one  A  to  K  inclusive,  and  one  L  to  Q  inclusive,  and  is 
designed  for  use  for  one  year  only.  The  pages  are  13  inches 
wide  by  16  inches  high.  Each  page  and  cut  page  is  ruled 
for  two  months,  making  six  pages  for  each  account  for  the 
year.  That  is,  one  full  leaf,  then  two  cut  leaves,  then  one  full  leaf, 
etc.,  throughout  the  book.  Each  page  will  receive  eight  accounts 
and  each  account  is  ruled  to  receive  eleven  order  numbers  and 
eleven  postings.  Both  debit  and  credit  postings  are  entered  in  the 
same  column  under  the  word  "sundry,"  all  debits  in  black  ink  and 
all  credits  in  red  ink.  This  is  common  bank-practice,  and  is  not 
productive  of  confusion  or  inaccuracy.  Under  the  heading  of  each 
month  the  first  column  records  the  balance  upon  the  first  of  that 
month  as  taken  from  the  totals  on  the  last  day  of  the  preceding 
month,  and  it  is  placed  on  the  top  line  in  the  space  allotted  to  that 
account,  either  in  black  or  red  ink  according  as  it  is  a  debit  or 
credit  The  next  column,  headed  "orders."  is  used  for  entry  of  pro- 
duction-orders. If  reference  is  had  to  the  first  page  of  the  produc- 
tion-order form  it  will  be  noted  that  a  space  is  left  for  the  date 
of  charge,  and  the  amount  of  money  value  of  the  order,  as  charge- 
able to  the  customer.    Instead  of  journalizing  these  orders  or  writ- 


THE  COMPLETE  COST-KEEPER.  147 

ing  them  again  in  a  sales  book,  the  order  is  entered  directly  upon 
the  ledger,  the  only  entries  made  being  the  date  of  charge,  which 
is  the  day  the  job  was  finished,  as  stamped  upon  the  face  of  the 
order  before  its  return  to  the  counting  room,  the  number  of  the 
order,  and  the  amount  in  dollars  and  cents.  In  order  that  the 
treasurer,  in  inspecting  the  ledger,  may  know  the  terms  of  the 
order,  an  index-letter  is  placed  before  the  order  number  when  the 
order  is  priced,  A  standing  for  spot  cash,  B  for  thirty  days  net, 
C  for  sixty  days  net,  and  so  on,  as  may  be  chosen.  This  direct 
ledger  entry  of  the  orders  gives  the  debit  side  only.  To  get  the 
credit  side,  at  the  end  of  every  month  the  "amount"  column  for 
the  month,  under  the  head  of  "orders,"  is  footed  on  each  page  of  the 
ledger.  The  total  of  each  page  is  drawn  off  on  a  loose  sheet  of 
paper,  and  the  grand  total  is  passed,  in  red  ink,  to  the  credit  of  the 
sales  account  for  that  month,  making  that  single  credit  sum  equal 
all  the  debit  sums  of  the  order  column  for  the  month.  After  the 
orders  are  entered  in  the  ledger  they  are  entered  in  the  sales  dis- 
tribution book,  where  the  number  of  the  order  is  noted  and  the 
value  thereof  is  placed  in  the  column  of  the  department  or  branch 
which  should  have  credit  for  the  sale.  At  all  times  the  total  foot- 
ings of  the  sales  distribution  columns  equal  the  total  credits  for 
the  sale  account.  The  columns  under  "sundry"  receive  all  the  post- 
ings from  the  cash  book,  journal,  voucher  book,  and  bills  receiv- 
able book,  and  are  provided  with  proper  columns  to  indicate  the 
date,  the  book  from  which  the  posting  was  made,  the  folio  of  same, 
and  the  amount  of  the  posting.  At  the  end  of  the  month  any  bal- 
ance is  carried  forward  to  the  next  balance  column,  and  the  pro- 
cess is  repeated  for  the  ensuing  month.  In  transferring  balances 
from  one  month  to  another,  it  is  found  in  actual  practice,  if  the 
collections  have  been  made  according  to  good  business  usage  that 
these  balances  can  be  arrived  at  practically  by  inspection  so  that 
the  mental  effort  demanded  of  the  book-keeper  is  not  greater  than 
that  called  for  by  the  ordinary  style  of  ledger,  and  there  is  no 
ruling  off  to  be  done.  The  spaces  as  ruled  for  allotment  to  each 
account  are  found  generally  sufficient  in  practice,  but  in  case  of 
some  very  active  accounts  it  has  been  found  necessary  to  use  two 
spaces.  In  case  some  account  which  normally  would  be  amply 
provided  for  bv  one  space  should  be  abnormallv  active  in  orders 
during  a  certain  month,  and  the  entire  space  should  be  occupied 


148 


THE  COMPLETE  COST-KEEPER. 


Id 

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7, 

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oa 

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THE  COMPLETE  COST-KEEPER. 


149 


I  ;  ;  ;  : 

1       !        .        .        . 
i  _  : • '■ '■ 

i   M    ;   i 

!      :      :      :      : 

t)*  ; '•- — ^ — '■ — 

<  :      :      :      : 

<  \_-_-_l ■■__ 

s         .... 

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t,  .... 


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X! 


under  the  order  column,  any  over- 
pluD  orders  maybe  entered  through 
the  medium  of  the  journal,  charging 
the  party  and  crediting  sales  ac- 
count, but  after  the  experience  of 
the  first  year  there  appears  to  be 
very  little  difficulty  in  making  suit- 
able allotments.  In  the  front  part 
of  the  ledger,  A  to  K,  a  number  of 
leaves  ruled  as  shown  by  form 
AAU  are  inserted  for  the  purpose  of 
recording  bills  payable.  At  the 
right  of  the  heavy  line  are  three 
columns  for  the  day,  month  and 
year  when  note  was  issued  ;  next, 
when  payable  ;  then,  where  paya- 
ble ;  next,  day,  month  and  year 
when  due,  and  to  the  extreme  right 
the  amount  of  note.  To  the  left  of 
the  heavy  line  the  spacing  is  for 
the  day,  month  and  year  when 
paid.  Next  space  is  for  remarks 
and  then  comes  amount  column. 
Each  letter  of  the  alphabet  is  usually 
given  one  page  or  two  pages  the 
book  being  provided  with  sufficient 
leaves  for  that  purpose. 

Cash  Book.    The  cash-book, page 
is  13  inches  wide  x  16  inches  high, 
ruled  as  shown  by  form  AV. 

As  business  is  currently  done 
with  four  local  banks  and  the  works' 
cash  drawer,  the  cash  book  is  ruled 
as  shown.  When  checks  are  receiv- 
ed they  are  entered  on  the  left-hand 
side,  the  first  column  being  for  the 
date,  the  second  tor  the  account  to 
be  credited,  the  third  for  the  items 


I50 


THE  COMPLETE  COST-KEEPER. 


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paid,  the  fourth  for  the  book- 
keepers ledger  folio,  the  fifth 
for  the  amount  of  payment. 
So  far  the  book  is  like  any  or- 
dinary cash  book.  The  next 
five  columns  indicate  where 
this  money  is  deposited  and 
the  cashier  in  making  his  en- 
try determines  at  once,  if  the 
cash  item  be  a  check,  at  which 
bank  he  will  deposit  it,  and 
enters  it  directly  in  the  proper 
column.  If  it  is  actual  cash, 
he,  of  course,  enters  it  in  the 
cash-drawer  column.  In  mak- 
ing payments  the  same  rule 
applies;  the  last  five  columns 
indicating,  in  case  of  a  check, 
which  bank  is  drawn  on,  or  if 
actual  cash,  that  it  comes 
from  the  drawer.  If  at  any 
time  it  is  desirable  to  draw  a 
check  upon  one  bank  and  de- 
posit it  in  another,  that  trans- 
action is  very  simply  made 
by  writing  in  red  ink  upon 
each  side  of  the  cash  book 
under  its  proper  date  "cash 
transfer,"  and  inserting  the 
amount  in  the  column  of  the 
bank  where  it  was  deposited 
on  the  left-hand  side,  and  in 
the  column  of  the  bank  from 
which  it  was  drawn  on  the 
right-hand  side.  This  would 
apply  also  to  a  deposit  from 
the  cash  drawt-r  to  a  bank  or 
to  the   withdrawal     of  funds 


THE  COMPLETE  COST-KEEPER.  151 

from  a  bank  to  place  in  the  cash  drawer.  At  first  glance 
it  might  seem  difficult  to  check  the  bank  deposits  with 
the  bank  book,  because  in  the  cash  book  the  items  are  not  combined 
in  the  total  of  each  individual  deposit.  This,  however,  is  not  the 
case,  for  the  reason  that  deposits  are  made  consecutively,  and  in 
almost  every  case  the  cashier  in  checking  with  his  bank  book,  will 
find  the  additions  of  the  groups  to  correspond  with  his  bank-book 
items.  If,  however,  there  should  be  a  question,  as  the  deposit 
slips  are  all  copied  before  going  to  the  bank,  reference  can  be  made 
to  any  deposit  slip  and  full  information  at  once  obtained  as  to  the 
deposit.    In  active  practice  this  is  rarely  necessary. 

Journal.  The  journal  used  does  not  vary  materially  from  the 
standard  stock  journal.  It  is  made  to  order,  for  the  purpose  of 
maintaining  uniformity  in  size  with  the  other  books. 

Vouchers.  The  voucher  is  8^  inches  wide  x  7  inches  high.  It 
is  printed  in  copying  ink  and  ruled  as  shown  by  form  AW.  When 
an  invoice  has  been  properly  checked,  it  is  passed  to  a  cashier's 
clerk  who,  enters  it  upon  the  voucher.  This  voucher  at  this  time 
is  not  made  in  full  form ;  it  is  not  dated  at  the  top,  that  not  being 
done  until  it  is  issued.  The  date  of  the  invoice,  or  it  may  be  of 
several,  and  the  amount,  are  noted  in  the  first  two  columns  at  the 
left.  If  there  be  any  deduction  noted  upon  the  invoice  at  the  time 
of  making  the  voucher,  it  is  entered  under  the  head  of  "deduc- 
tions." The  account  to  which  this  particular  voucher  is  to  be 
charged  is  specified  at  the  lower  left-hand  corner,  below  the  foot- 
ings of  the  invoice  or  invoices.  By  reason  of  the  invoices  being 
distributed  upon  the  distribution  book,  the  great  majority  of 
vouchers  are  chargeable  direct  to  purchase  account.  After  it  is 
filled  out  as  above,  the  voucher  is  handed  to  the  book-keeper,  who 
enters  it  upon  the  voucher  book,  gives  it  the  proper  number,  and 
places  his  date  of  entry  opposite  the  initials  V.B.  It  is  then  re- 
turned to  the  treasurer  who  places  it  in  a  file  in  order  of  date  when 
payable  according  to  terms.  When  a  particular  invoice  or  account 
becomes  due,  the  treasurer  removes  the  voucher  from  the  file,  dates 
it,  makes  the  deductions  already  shown,  or  any  others  proper  by 
reason  of  cash  discount  or  otherwise,  and  fills  out  the  lower  por- 
tion of  the  voucher  for  the  net  amount  of  the  settlement,  inserts 
the  name  of  the  bank  which  he  wishes  to  pav  the  voucher,  and 
signs  it.    As  all  of  the  writing  upon  the  voucher  is  done  in  copy- 


152 


THE  COMPLETE  COST-KEEPER. 


Form  AX. 

Tank  Builder's  Weekly  Report  for. 


Pav  Roll. 


(I) 

Name 

iji2 

)    Time  for  week  on 
Jolis  as  F"llows. 

(3^ 

Total 

(4) 
Rate 

(5) 
Amount 

(6) 
Deduct 

(7) 
Pav 

i'      1     1     1     1     1     1 

Time 

Per  H'r 

Board.       Men. 

H       i 

1 

at.     ■    c 

o   a  « 

Oh      ^    ^ 

a 

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^  ^ 

1  >^ 

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0  !=3   -S 

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0) 

t^  ^ 

1  -H    :     :     :     :     :     : 

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Cash  Account. 


]<eceiv.-d. 

>  mount 

Paid  Out. 

Anmu:  t 

Balance  on  hand      (12) 
Rec'd  from 

S.  W.  &Co.     (13) 

1 

Pay  Roll  (Column  7)            rs) 
Board  which  we  deduct 

(Jolumn  6)  (<j) 

Board  which  we  stand       (  0) 

Sundries,  item'd  as  follows:  (ir; 

.... 

•■! 

I 

! 



1 

1 

1 

1          1 

• 

1 

1      ! 

I.NSTKUCTIONS. 
F'll  out  columns  i,  2.  ?,  4  and  6  in  Pav  Rol', 
and  Items  0.  10  and  n  and  s'eicd  in  evrry  .Sat- 
urday ni^ht.  We  will  fill  in  the  rest  ami  send 
ba-  k  with  the  monfv.  When  ymi  get  the 
monev.   sign   this   sheet  and    return    10   us. 


.Job  Boss 


Address. 


Form  AX.    Tank  Builder's  Week'y  Report.    Size,  85^  inches  wide  by  14  inches  high.    Docket 
on  back  is  reproduced  on  Iront  to  save  space. 


THE  COMPLETE  COST-KEEPER. 


153 


Form  AXX.     (Back.) 


GENERAL. 


Name  of  Boss. 
Address 


INSTRUCTIONS. 

This  report  must  be  made  out  DAILY  and  forwarded  by  FIRST 
MAIL,  unless  job  is  remote  from  postoffice.  In  that  case  it  is  to  be 
made  daily,  and  all  for  the  week  are  to  be  sent  with  the  pay  roll  sheet. 
This  report  is  to  show  each  man's  daily  time,  and  what  work  he  did. 
Under  the  head  of  "  General  "  furnish  such  information  concerning 
the  jobs  as  may  not  be  given  on  opposite  page.  Use  separate  sheet  for 
each  tank. 


I— I         "^ 

< 

O 

CO 

{^ 
P 

< 
t-i      0 


CQ 


Fotm  AXX.     (Back.)    Size,  S)^  inches  wide  by  14  inches  high. 


354 


THE  COMPLETE  COST-KEEPER. 


Form  AXX.     (Front.) 

Tank  Builder's  Daily  Report  for.. 
Tank.     Job  Nr 

">.... 

..  .1 

90 

Names. 4S= 

!               ! 

Unloading      

1        j 

Making  Horses  and  Ells 

Fitting  up  Bottom .... 

Riveting  Bottom  and   Bot-  | 

torn  Angle  Iron ( 

Putting  on  First  Ring 

Hours  ..... 

Sheets 1 

Riveting  First  Ring ■] 

Hours  . 

Sheets . 

Raising  Scaffold  for  2d  Ring. 

Putting  on  2d  Ring   

Riveting  2d  Ring < 

Raising  Scaffold  for  3d  Ring. 

Hours  . 

Sheets 

Putting  up  3d  Ring 

Hours  . 

Riveting  3d  Ring s 

Sheets 

Raising  Scaffold  for  4th  Ring 
Puttinc^  uD  dth  Rine   

Riveting  4th  Ring | 

Hours  . 

Sheets . 

Raising  Scaffold  for  5th  Ring 

Riveting  5th  Ring -j 

Raising  Scaffold  for  6th  Ring 
Pnttinp'  un  6th  Rinc 

Hours  . 

Sheets . 

::::  ::::i 

Riveting  6th  Ring -j 

Raising  Scaffold  for  7th  Ring 
Pnttinp'  un  7th  Rine 

Hours  . 

Sheets . 

Riveting  7th  Ring. ....  | 

WnrV  on  all  Too  Ansrle  Iron. . 

Hours  . 

Sheets . 

Calking  Bottom -j 

Calking  First  Ring \ 

Calking  Second  Ring | 

Calking  Third  Ring | 

Calking  Fourth  Ring ■< 

Calking  Fifth  Ring -J 

Calking  Sixth  Ring j 

Calking  Seventh  Ring ->^ 

Hours  . 

Sheets . 
Hours  . 

Sheets . 
Hours  . 
Sheets . 
"Hours  . 

Sheets . 
Hours  . 
Sheets . 
Hours  . 
Sheets . 
Hours  . 
Sheets 
Hours  . 
Sheets . 

Clean'g  up  and  Shipp'g  To.ols 

' '  1 

Form  AXX.     (Front).     Size,  S}4  ins.  wide  X  14  ins.  high 


THE  COMPLETE  COST-KEEPER.  155 

ing  ink,  and  as  the  voucher  is  printed  in  copying  ink,  it  is  then 
copied  in  a  tissue  book  which  serves  as  check  stub-book,  and 
mailed.  Previous  to  copying  it  is  entered  upon  the  cash  book,  and 
the  amount  inserted  in  both  the  total  column  and  the  column  of  the 
bank  which  shall  pay  same.  The  entry  upon  the  cash  book  is  made 
in  the  same  form  as  though  the  voucher  were  to  be  posted  directly, 
in  the  general  ledger,  to  the  party  in  whose  favor  it  was  made. 
Inasmuch  as  this  is  not  the  case,  and  it  is  to  be  posted  upon  the 
voucher  book,  in  order  that  there  may  be  no  mistake  by  the  book- 
keeper, and  that  it  may  not  go  on  the  ledger,  the  treasurer,  in  mak- 
ing his  entr}%  records  the  number  of  the  voucher  in  the  folio 
column  of  the  cash  book,  placing  the  letter  "V"  before  it.  The 
book-keeper  in  posting  then  turns  directly  to  the  number  indicated 
upon  the  voucher  book  and  posts  said  amount  on  the  side  of  the 
book  marked  "payment."  Any  deduction  which  has  been  made 
from  the  face  of  the  invoice  is  charged  upon  the  journal  at  the 
same  time  to  the  same  voucher,  and  credited  to  the  proper  account. 
If  the  voucher  is  to  go  to  a  personal  ledger  account  it  is  marked 
"red"  in  place  of  a  distribution  account  and  is  entered  on  both 
sides  of  the  voucher  book  in  red  ink  so  as  to  obtain  a  serial  num- 
ber for  it.  These  red  figures  are  ignored  in  footing  the  voucher 
book.  In  entering  voucher  on  cash  book,  the  folio  column  is  left 
open  in  this  case  and  the  book-keeper  posts  directly  to  the  ledger. 

This  same  form  of  voucher  is  used,  with  a  slight  alteration, 
for  notes  or  acceptances ;  the  vouchers  used  for  that  purpose  have 
the  word  "demand"  omitted  and  a  line  inserted  in  its  place  for 
record  of  date  payable.  These  are  called  "time  vouchers,"  and  are 
invariably  taken  the  same  as  acceptances  for  time  bills.  The  trea- 
surer, when  issuing  a  voucher,  having  a  personal  knowledge  of  the 
balances  due  the  firm  on  the  general  ledger,  knows  whether  there 
is  any  book  account  of  any  kind  against  the  party  in  whose  favor 
the  voucher  is  drawn.  If  such  drawback  exists  a  journal  entry  is 
made  charging  the  voucher  and  crediting  the  same  party's  book 
account  in  the  same  manner  as  though  it  were  any  other  deduction. 

\^oucher  Book.  The  voucher  book  pages  are  13  inches  wide 
X  16  inches  hi^h.  The  left-hand  page  is  ruled  like  form  AAW. 
and  the  right-hand  page  like  AAX. 

As  detailed  under  the  head  of  vouchers,  the  voucher  is  entered 
upon  the  voucher  record  book  upon  the  right-hand  side  of  the 


156 


THE  COMPLETE  COST-KEEPER. 


Form  AW. 
No. 


STRUTHERS,  WELLS  &  CO. 


Warren,  Pa. . . 
Struthers,  Wells  &  Co.,  in  account  with. 


,190. 


I 

nvoices. 

Date. 

Amount 

• 

Deductions 


Items. 


K 
o 

o 
> 


Voucher. 


Received  from  Struthers,  Wells  &  Co. 


in  settlement  of  above  account. 


Dollars,   $. 

(Sign  here. ) 


If  above  settlement  is  not  correct  or  satisfactory,  return  this  voucher 
at  once  with  full  particulars. 

The of  Warren,  Pa.,  will  pay  this  Voucher  on  Demand 

if  presented  with  receipt  properly  signed  by without 

alteration  or  erasure.  STRUTHERS,  WELLS  &  CO., 

y.  B 

Treasurer. 


Voucher.    Form  AW.    The  docket  form  on  the  left-hand  side  of  back  of  this  voucher  is  1 
produced  in  face  of  voucher  to  save  space.     Size  of  voucher,  8J4  inches  wide  by  7 
inches  high.     Sire  of  docket,  on  the  left-hand  side,  inside  double  ruled  blue 
lines,  3j^  inches  wide  by  8  Inches. high. 


THE  COMPLETE  COST-KEEPER.  157 

heavy  line  ruled  just  to  the  left  of  the  numbers  in  the  book.  These 
vouchers  are  entered  directly,  giving  first  the  date  of  entry,  next  in 
whose  favor,  next  the  amount.  Then  the  distribution  is  placed  m 
the  proper  column.  There  are  three  columns  with  printed  head- 
ings, as  shown,  with  two  principal  headings  aside  from  the  pur- 
chase account,  viz.,  freight  and  stationery.  Those  are  the  two 
accounts  most  used  where  the  invoices  are  distributed  directly, 
and  not  upon  the  purchase  distribution  book.  There  are,  as  will 
be  noticed,  a  number  of  blank  columns  which  may  take  any  head- 
ings desirable.  These  columns  are  all  footed  at  the  bottom  of  each 
page,  and  are  posted  from  such  footings  to  their  proper  accounts 
in  the  ledger.  It  will  be  observed  under  the  heading  of  ''payment'' 
that  for  each  voucher  there  are  three  lines  for  postings ;  this  is  be- 
cause there  are  frequent  deductions  requiring  journal  entries,  and 
the  postings  for  those  would  come  from  the  journal  while  the  net 
amount  of  the  voucher  would  come  from  the  cash  book.  Gener- 
ally there  are  not  more  than  two  postings  to  any  voucher,  but 
for  safety  and  to  prevent  crowding,  three  spaces  are  provided. 
Since  the  postings  of  the  total  amount  of  vouchers  entered,  as 
they  appear  at  the  bottom  of  each  page,  make  a  debit  in  the  ledger, 
the  amount  of  vouchers  standing  open  at  the  time  of  making  any 
trial  balance  must  be  considered  a  credit.  Therefore,  in  making 
up  the  trial  balance  all  vouchers  standing  open  are  drawn  off  on 
a  loose  sheet  of  paper,  and  the  total  is  placed  in  the  credit  column 
of  the  trial  balance,  opposite  the  words  "voucher  book."  This 
amount  gives  the  total  amount  owed  by  the  concern  on  unpaid 
bills.  The  "amount"  column  under  the  head  of  "payment"  is  never 
footed  until  all  vouchers  located  in  the  book  prior  to  that  page  are 
paid,  although  that  page  itself  may  be  completely  closed ;  so  that 
when  the  book-keeper  finds  the  last  page  that  is  footed  he  can  com- 
mence at  that  point  to  draw  off  his  unpaid  vouchers,  knowing  that 
ever}'thing  previous  to  that  has  been  closed.  This  obviates  the 
necessity  for  keeping  a  ledger  account  with  each  firm  from  whom 
goods  are  bought,  and  still  preserves  the  advantage  of  recording 
on  the  general  books  as  liabilities  all  bills  owed  by  the  concern. 
Many  book-keepers  keep  invoices  off  of  the  books  until  paid ;  the 
disadvantage  of  this  proceeding  is  the  failure  of  the  commercial 
books  to  show  all  the  liabilities  of  the  concern  at  the  end  of  each 
month.    Another  advantage  of  the  method  used  is  that  all  invoices 


T58 


THE  COMPLETE  COST-KEEPER. 


VOUCHERS. 

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THE  COMPLETE  COST-KEEPER.  159 

are  completely  closed  when  settled,  leaving  no  tag  ends  for  a  book- 
keeper to  check  over  on  his  ledger. 

Bills  Receivable  Book.  This  book  is  of  standard  size,  13 
inches  wide  x  16  inches  high,  and  ruled  as  shown  by  forms  AY 
and  AZ. 

This  book  carries  a  complete  record  of  the  history  of  all 
notes  or  acceptances.  It  may  be  termed  a  combined  journal  and 
ledger,  in  reference  to  the  bills  receivable,  giving  knowledge  not 
only  of  the  amount  of  bills  receivable  on  hand  and  available  for 
discount,  but  an  itemized  exposition  of  all  notes  indorsed,  and 
place  of  discount.  In  this  book  spaces  are  allotted  to  each  letter 
in  alphabetical  order,  so  that  it  is  easy  to  turn  to  the  notes  of  any 
individual.    The  scheme  of  the  book  is  as  follows : 

All  that  portion  of  the  book  to  the  left  of  the  wide  column 
headed  "number"  may  be  considered  as  the  journal  portion,  since 
all  notes  are  entered  directly  in  this  space,  from  which  the  notes 
are  posted  into  the  proper  account.  The  different  columns  give 
the  date  of  entry,  the  date  of  the  note,  the  maker  of  the  note,  the 
indorser  if  any,,  where  payable,  length  of  time  to  run,  due  date, 
and,  farther  to  the  right  in  the  column  headed  "face,"  the  amount 
of  the  note.  In  the  column  headed  "credit"  is  inserted  the  account 
which  is  to  receive  credit  for  the  note.  If  more  than  one  account 
is  to  receive  credit,  the  necessary  number  of  lines  are  taken  and 
the  several  amounts  are  inserted  opposite  the  proper  account  in 
the  column  headed  "short  items."  '  If  only  one  account  is  to  be 
credited  no  amounts  are  inserted  in  the  "short  items"  column,  but 
the  total  amount  of  the  face  is  posted.  In  the  "folio"  column  the 
ledger  page  is  inserted,  and  the  narrow  column  is  for  the  posting 
check-mark.  The  total  amount  in  the  "face"  column  makes  the 
debit  to  bills  receivable,  and  the  credit  for  the  double  entry,  of 
course,  rests  in  the  credit  postings.  When  a  note  is  paid  without 
having  been  discounted,  the  amount  is  posted  to  the  credit  of  bills 
receivable,  directly  opposite  the  proper  note,  in  the  space  headed 
"credit,"  giving  the  date,  stating  how  closed,  the  folio  from  which 
the  posting  was  made,  and  the  amount.  If  there  is  interest  on  the 
note,  the  entry  must  be  made  in  the  cash  book  so  that  "discount 
and  interest"  receives  credit,  and  the  amount  credited  to  bills  re- 
ceivable exactly  equals  the  face  of  the  note.  If  the  note  is  renew- 
ed, the  new  note  is  entered  upon  the  left  of  the  "number"  column 


i6o  THE  COMPLETE  COST-KEEPER. 

and  posted  from  that  side  to  the  credit  side,  opposite  the  note 
closed.  The  book  is  numbered  consecutively  on  each  line,  and  the 
note  takes  the  number  of  the  line  upon  which  it  is  entered.  In  the 
case  of  a  renewal  the  entry  made  in  the  column  "how  closed/' 
gives  a  reference  to  the  number  of  the  renewal  note ;  that  is,  the 
entry  says,  "renewed  by  number  so  and  so,"  as  the  case  may  be. 
Record  is  made  of  the  renewal  under  the  sub-head  of  "credit,"  re- 
ferring to  the  number  of  the  note  which  was  renewed.  In  case  a 
note  is  discounted,  an  entry  on  the  left-hand  side  of  the  cash  book 
credits  the  face  of  the  note,  entered  in  the  column  of  the  bank  dis- 
counting same,  with  a  charge  on  the  opposite  side  to  "discount  and 
interest"  to  cover  the  amount  of  discount  entered  in  the  column  of 
the  same  bank,  so  that  a  subtraction  of  the  discount  on  one  side 
from  the  face  of  the  note  on  the  other,  gives  the  net  amount  of 
bank  credit.  This  makes  the  posting  to  the  credit  of  "bills  dis- 
counted" equal  the  face  of  the  note  as  entered.  This  credit  to 
"bills  discounted"  is  posted  on  the  right-hand  side  of  the  bills  dis- 
counted portion  of  the  book,  directly  opposite  the  proper  note, 
showing  date,  where  discounted,  amount,  and  the  folio  from  which 
the  posting  was  made.  In  taking  off  the  trial  balance,  the  "bills 
receivable"  and  the  "bills  discounted"  are  taken  off  separately..  All 
notes  standing  open  in  the  "face"  column  of  "bills  receivable," 
without  any  postings  under  the  credit  column  of  same,  are  drawn 
off  as  being  the  total  debit  to  "bills  receivable"  for  the  trial  bal- 
ance, and  if  none  of  these  notes  has  been  discounted  they  all  show 
as  on  hand  and  available  for  discount,  and  all  notes  standing  open 
in  the  credit  column  of  "bills  discounted"  are  taken  off  and  stand 
in  the  cerdit  column  of  the  trial  balance  opposite  the  "bills  dis- 
counted" account.  This  amount  shows,  at  every  trial  balance  date, 
the  exact  amount  of  indorsements  for  which  the  concern  is  con- 
tingently liable.  To  determine  the  net  amount  or  actual  amount 
of  "bills  receivable"  available,  it  is  only  needful  to  deduct  "bills 
discounted"  from  "bills  receivable."  This  book  tells  how  much 
is  under  indorsement,  and  whose  paper  it  is,  and  is  proved  accu- 
rate at  each  trial  balance.  After  a  note  is  discounted  the  credit 
column  of  the  "bills  receivable"  account  and  the  debit  column  of 
the  "bills  discounted"  account,  are  open  until  the  note  is  paid  or 
renewed.  It  is  customary  to  go  through  the  "bills  receivable" 
book  once  a  month  and  examine  the  discounted  notes.    All  those 


THE  COMPLETE  COST-KEEPER.  i6i 

which  have  been  paid  are  closed  by  a  red-ink  entry  made  in  each 
of  the  foregoing  two  columns,  giving  the  date  and  writing  the 
word  ''paid/'  and  entering  the  amount.  This  appearing  in  both 
the  credit  column  of  "bills  receivable"  and  the  debit  column  of 
''bills  discounted,"  gives  the  debit  and  credit  needful  to  maintain 
the  equilibrium  of  the  trial  balance.  If  a  note  becomes  due  and  is 
not  paid,  and  is  taken  up,  the  check  is  entered  on  the  right-hand 
side  of  the  cash  book  and  charged  to  "bills  discounted,"  giving 
name  of  note.  It  is  then  posted  to  the  debit  column  of  that  ac- 
count, closing  the  bills  discounted  account,  and  leaving  only  the 
bills  receivable  account  open,  which  nullifies  the  discount,  and 
shows  the  note  to  be  held  by  the  establishment.  If  a  debtor  has 
arranged  to  renew  his  note  with  the  bank,  with  the  work's  indorse- 
ment, the  indorsement  is  made  and  the  note  is  entered  upon  the 
"bills  receivable"  account,  credited  to  "bills  discounted"  as  a  re- 
newal of  number  so-and-so,  and  the  posting  is  then  carried  directly 
across  the  page  to  the  credit  side  of  "bills  discounted,"  and  the 
accountant  also  turns  to  the  note  renewed  and  closes  it  in  red 
ink,  as  idicated  above,  with  entry  in  the  "how  closed"  column,  "re- 
newed by  No.  so-and-so." 

Forms  AY  and  AZ  give  examples  of  the  use  of  this  book. 
Note  No.  iz^40  was  credited  to  one  account  and  never  discounted, 
standing  open  as  a  "bill  receivable"  at  the  time  of  the  observation. 
No.  1442  was  credited  to  two  accounts,  and  when  due  was  renewed 
by  No.  1443,  never  having  been  discounted.  No.  1443  '^^as  credit- 
ed to  "bills  receivable"  as  a  renewal  of  No.  1442 ;  was  never  dis- 
counted and  was  paid  at  maturity.  No.  1444  was  credited  to  one 
account ;  was  discounted ;  was  afterwards  taken  up  by  the  works, 
and  written  back  into  "bills  receivable,"  and  later  was  paid.  No. 
1445  was  credited  to  one  account,  discounted,  and  paid  at  bank  at 
maturity.  The  credit  here  to  B.  R.  and  debit  to  B.  D.  is  written  in 
red  ink  directly  upon  the  book.  No.  1446  was  credited  to  one 
account,  discounted,  and  stands  open  both  in  B.  R.  and  B.  D.  In 
the  trial  balance  this  would  make  the  statement  of  the  two  ac- 
counts as  follows:  bills  receivable,  $620.00;  bills  discounted, 
$500.00,  leaving  net  amount  available  for  discount,  $120.00. 

Sales  Distribution  Book.  This  book  has  pages  16  inches  wide 
X  13  inches  high,  and  is  shown  by  forms  BA  and  BB. 

Each  production-order  is  entered  in  the  ledger  and  in  the 
sales  distribution  book,  the  number  of  the  order  being  placed  in  the 
solid  column,  under  the  proper  division,  and  the  amount  of  the 


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OF   THH 

TJNIVERSr 
CALlFORf 


i64  THE  COMPLETE  COST-KEEPER. 

order  in  its  proper  division.  This  gives  the  total  sales  at  the  end 
of  each  month  made  by  the  various  departments  and  branches,  con- 
cerning which  it  is  desirable  to  keep  a  record.  After  this  is  done 
by  the  book-keeper  one  of  the  office  clerks  enters  the  cost  of  each 
order  in  the  "cost"  column  opposite  its  selling  price,  so  that  this 
book  tells  at  the  end  of  each  month  the  difference  between  the  sell- 
ing price  of  the  goods  sold  in  each  division  and  the  flat  cost  of 
those  goods,  the  total  amount  showing  the  gross  profit  on  the 
goods  for  that  month. ^  The  same  clerk  also  inserts  opposite  each 
order  the  purchaser's  name  for  future  reference. 

Freight  Book.  This  book  has  pages  of  standard  size,  and 
ruled  as  shown  by  forms  BC  and  BD. 

Upon  the  payment  of  freight  bills  they  are  entered  on  the 
freight  book,  under  the  following  headings: 

Date  of  payment,  number  of  voucher,  name  of  railroad,  paid, 
date  of  freight,  point  of  shipment,  name  of  shipper,  articles,  car 
number,  weight,  rate,  and  amount  of  freight.  Freight  is  charge- 
able to  various  accounts.  The  voucher  itself,  when  issued,  is 
charged  directly  to  the  freight  account  upon  the  ledger.  The  dis- 
tribution of  the  freight  during  the  year  is  kept  upon  the  right- 
hand  or  distribution  side  of  the  freight  book,  as  shown  by  the  vari- 
ous headings.  That  freight  which  is  distributed  to  the  personal 
column  is  on  material  sent  to  the  works  for  repairs,  etc.,  upon 
which  the  shipper  fails  to  pay  freight.  Inserted  under  the  head 
of  "chargeable,"  in  the  column  headed  "to  whom,"  is  the  name  of 
party  to  whom  appropriate  charge  is  to  be  made.  At  frequent  in- 
tervals the  book-keeper  takes  these  personal  amounts  off  this  book, 
and  makes  journal  entries  of  them,  charging  to  the  parties  and 
crediting  to  the  freight  account,  inserting  the  date  when  so  charg- 
ed. Footings  of  distribution  are  carried  forward  from  month  to 
month  until  the  end  of  the  year.  At  that  time  the  freight  account 
is  credited  and  the  various  items  indicated  by  the  column  headings 
are  charged  with  the  yearly  footings,  thus  closing  the  freight  ac- 
count, as  indicated  in  the  description  of  the  whole  accounting 
system. 

Purchase  Distribution  Book.  This  book  has  pages  of  stan- 
dard size,  13  inches  x  16  inches,  ruled  as  per  forms  BE  and  BF. 

When  invoices  received  are  checked  up,  and  the  terms  and 
prices  certified  as  correct  by  the  proper  clerk,  the  amount  of  freight 
paid  upon  the  invoice  is  entered,  and  any  deduction  for  excess 
freight  is  noted,  the  invoice  is  charged  to  the  proper  department 


THE  COMPLETE  COST-KEEPER. 


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1 66  THE  COMPLETE  COST-KEEPER. 

by  entry  upon  the  purchase  distribution  book,  and  also  to  the 
proper  account  of  that  department.  At  the  end  of  the  year  these 
columns  are  all  footed,  their  totals  credited  to  purchase  account, 
and  charged  to  the  several  accounts  to  which  they  have  been  dis- 
tributed. 

Incoming  Invoices.  This  form  BG,  is  13  inches  wide  x  8-J- 
inches  high.  In  ordering  goods  from  outside  parties  one  of  these 
invoice  blanks  is  always  sent  with  the  order,  so  that  all  invoices 
may  be  of  uniform  size  for  filing,  and  to  assist  in  making  distri- 
butions. When  goods  are  received  freight  is  entered  on  invoice, 
deductible  freight  noted  and  any  other  deductions  specified,  and 
the  invoice  is  checked  and  certified  correct.  Under  the  head  of 
"items  for  transfer  book,"  the  invoice  is  distributed  to  the  several 
accounts  entered  there,  all  items  being  distributed  with  freight 
added.  If  the  goods  are  for  an  item  not  listed  on  the  purchase  dis- 
tribution book,  the  name  of  the  account  chargeable  with  same  is 
entered  in  the  blank  line  under  purchase  account  at  the  head,  with 
addition  of  freight,  and  a  deduction  made  of  an  equal  amount  of 
freight.  This  is  done  so  that  the  seller  shall  receive  the  face  of  his 
bill  when  paid.  If  distribution  is  made  on  invoice,  the  face  of  the 
invoice  is  entered  opposite  "charge  purchase  account,"  the  invoice 
is  then  passed  to  the  counting-room  clerk  for  voucher  distribution, 
as  described  under  head  of  vouchers.  The  charges  thus  made  to 
purchase  account  do  not  have  freight  added,  but  the  freight  ob- 
tained from  the  freight  book  at  the  end  of  the  year  makes  purchase 
account  balance  the  total  distribution  items  which  have  freight 
added. 

Commission  Book.  Pages  are  of  standard  size,  and  ruled  as 
per  forms  BJ  and  BK. 

As  fast  as  production-orders  are  charged,  those  that  carry  a 
commission  to  any  party  are  entered  upon  the  commission  book, 
giving  the  date  of  each  order,  number,  to  whom  sold,  items,  the 
amount,  terms,  and  selling  price.  At  the  same  time,  under  the 
head  of  "comtnissions,"  the  name  of  the  party  to  receive  the  com- 
mission is  entered.  Commissions  are  not  paid  until  payment  for 
the  goods  is  received,  but  it  is  desirable  that  commission  liabilities 
should  appear  upon  the  books  at  the  end  of  each  month,  thus 
charging  the  sales  account  of  the  department  or  branch  receiving 
credit  for  the  same  with  the  amount  of  these  commissions  for  that 
month.  These  are  credited  "commissions  payable"  account;  ex- 
planation of  which  appears  in  the  schedule  of  accounts  following 
There  is  also  made  out  at  that  time  and  sent  to  each  party  to  whom 


THE  COMPLETE  COST-KEEPER. 


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i68  THE  COMPLETE  COST-KEEPER. 

commissions  will  probably  be  due,  a  statement  described  under 
head  of  "sales  statement"  which  shows  the  sales  upon  which  he  is 
entitled  to  commission  during  that  month.  At  the  end  of  each 
month  also,  the  settlement  of  such  accounts  as  have  been  closed  is 
noted  in  the  "settlement"  column.  The  amount  of  such  commis- 
sions is  then  placed  in  the  "amount"  column  under  the  head  of 
"commissions,"  and  a  journal  entry  made,  crediting  proper  par- 
ties with  commissions  and  charging  "commissions  paid"  account , 
description  to  follow.  At  the  same  time  a  commission  statement 
is  sent  to  the  party  showing  the  details  of  such  credit.  The  date 
of  entry  of  such  credit  is  also  inserted  in  the  credit  column.  The 
settlement  column  gives  the  date  of  settlement,  how  settled,  amount 
and  description  of  discount,  if  any,  and  the  net  amount  received. 
As  commissions  are  paid  only  upon  the  net  proceeds  of  the  sale, 
each  month  the  probable  commission  is  credited  to  "commissions 
pa:yable,"  and  charged  to  sundry  sales  account.  If  in  settlement 
there  are  deductions  ,an  entry  must  be  made  charging  "commis- 
sions payable"  and  crediting  the  proper  sales  account  the  differ- 
ence between  the  commission  improperly  credited  and  the  true 
amount  credited  the  individual. 

Commission-Sales  Statement.  This  is  8^  inches  wide  x  ir 
inches  high,  and  as  per  form  BL.  This  is  used  to  give  each  com- 
mission salesman  a  memorandum  of  his  sales  for  the  preceding 
month  ,so  that  he  can  check  them  up  and  correct  errors,  if  any. 

Commission  Statement.  This  is  of  same  size  as  preceding, 
and  as  per  form  BM.  This  is  the  notification  at  the  end  of  any 
month  that  the  salesman  has  been  credited  with  commissions  on 
collections  made  during  the  preceding  month,  and  giving  him  an 
itemized  list  of  the  accounts  upon  which  these  commissions  are 
credited. 

Record  of  Machinery  Consigned.  This  book  has  standard- 
size  pages,  and  is  as  per  form  BN.  It  is  used  to  keep  a  memoran- 
dum of  goods  consigned  to  various  parties ;  when  goods  are  sent, 
the  date,  items  and  value  are  inserted.  If  freight  is  prepaid,  the 
amount  expended  for  freight  is  inserted  in  the  third  column.  The 
conditions  upon  which  the  goods  are  consigned,  if  any,  are  stated 
in  the  "conditions"  or  "remarks"  column.  When  consignments 
are  reported  sold  the  date  of  sale  is  entered  opposite  the  piece  of 
machinery,  and  the  date  of  charge  against  the  seller.  But  one  piece 
of  machinery  is  recorded  upon  a  line,  so  that  the  charge  of  item 
comes  directly  opposite  the  specific  piece  of  machinery  sold.  Con- 
signed goods  are  inventoried  from  this  consignment  book. 


THE  COMPLETE  COST-KEEPER. 


169 


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THE  COMPLETE  COST-KEEPER. 


Form  BO.                 NOTICE  TO  ORDER  DEP'T. 

Order igo 

Now  Ready  in nenartment : 

For 

At 

Shipment,  by 

SHIPPING    CLERK    WILL    MARK    AND    SHIP    AS    FOLLOWS: 

No 

Shipped  to 
At 

Notice  of  Shipment  from  Struthers,  "Wells  &  Co. 

Warren,  Pa 190 . . 

Via By 

Car  Initials No Char£res 

No. 

i 

Items. 

How  Packed. 

i    

i    

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Form  BO.     s%  ins.  wide  X  9  ins.  high,  printed  in  copying  ink. 


THE  COMPLETE  COST-KEEPER. 


171 


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Judgment 

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STRUTHERS,  WELLS  &  CO. 

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THE  COMPLETE  COST-KEEPER. 


Form  BQ. 


Order  No. 
For 


PACKING  LIST. 

Warren ,  Pa. , 190 . 


.Boiler. 


Pes. 

Items. 

Rollers x 

inch safety  valve,  with 

bottom,  set  at lbs. 

inch case  steam  gauge  and  syphon. 

No water  column. 

Glass  water  gauge,  with  glass x 

inch Globe  valve  for  feed. 

inch Check  valve. 

inch Gate  valve. 

inch Whistle. 

inch Globe  valve  for  main  stop. 

inch  nipple 

.1           .i 

X inch  bushing 

inch tee 

Hand  hole  plates,  yokes  and  bolts 

No ■ inspirator. 

Shipped  as. 
Packed  by.. 


Form  BQ.     Size,  5  inches  wideby  8%  inches  high. 


THE  COMPLETE  COST-KEEPER.  173 

Notice  to  Order  Department.  Form  BO  is  5f  inches  wide  x 
9  inches  high  and  printed  in  red  copying  ink,  as  shown.  Above 
and  below  the  line  marked  "shipping  clerk  will  mark  and  ship  as 
follows,"  the  sheet  is  perforated.  This  shipping  memorandum  is 
filled  out  above  the  upper  perforation  and  in  the  ruled  space,  giv- 
ing the  number  and  description  of  items  and  how  marked,  in  de- 
partment furnishing  the  goods.  This  is  passed  to  the  assistant 
superintendent,  who  fills  in  the  shipping  directions  below  the  sec- 
ond perforation  and  passes  it  to  the  shipping  clerk,  who  makes  out 
the  proper  shipping  bill  and  tags.  The  notice  of  shipment  is  re- 
turned to  the  office  with  the  freight  bill,  and  it  is  then  copied  in 
a  copying-press  book  and  sent  with  the  freight  bill  to  the  customer, 
the  press  copy  being  the  record  of  shipment,  or  "shipping  book.'* 

Suspense  Ledger.  This  book  has  pages  of  standard  size,  and 
is  shown  in  form  BP.  At  the  end  of  each  year  accounts  which  are 
considered  bad  or  doubtful  are  charged  off  either  to  "former  profit 
and  loss"  or  to  "suspense  account,"  as  will  be  seen  by  reference 
to  those  two  accounts  as  explained  below.  In  order  that  such 
accounts  may  not  be  buried  and  that  they  may  still  receive  the 
same  amount  of  consideration  from  the  collection  department  as 
though  they  stood  upon  the  "general  ledger,"  they  are  transferred 
to  the  "suspense  ledger."  This  book  gives  the  name  of  the  debtor 
and  his  address,  together  with  the  date,  items,  and  amount  of  his 
charge.  It  also  shows  from  what  ledger  and  folio  the  account 
came,  and  when  charged  off.  It  then  gives  record  of  any  attempts 
at  collection  and  record  of  judgment,  if  judgment  was  obtained, 
and  when  finally  settled,  if  ever.  There  are  two  records  on  each 
page. 

All  accounts,  except  the  "voucher**  account,  "cash"  account, 
"bills  receivable"  account,  and  "bills  discounted'*  account,  are  kept 
upon  the  "general  ledger."  Special  accounts  which  have  no  bear- 
ing upon  the  general  system  are  ignored  here. 

In  the  following  explanation  of  accounts  all  of  the  accounts 
that  may  be  considered  standard  are  shown,  to  explain  the  charges 
and  credits  entering  into  each,  and  to  show  how  each  is  closed 
into  another,  progressively  coalescing  and  producing  totals,  or 
dividing  and  making  application  of  their  original  or  acquired 
totals  over  to  other  accounts  properly  aflFected  by  them. 

The  schedule  of  accounts  with  their  descriptions  and  explana- 
tions follow,  and  later  will  be  shown  the  interweaving  of  same  at 
the  final  closing  of  the  book. 


174 


THE  COMPLETE  COST-KEEPER. 


TOOLS    AND    MACHINERY. 


Charges. 


Credits. 


I — Balance  first  of  year. 

2 — All  tools  bought  for  increase 
and  not  to  make  good  wear  and 
tear. 


I — Any  tools  sold. 

2 — At  end  of  year  charge  profit 
and  loss  a  percentage  on  balance  at 
first  of  year,  for  depreciation. 


REAL    ESTATE. 


Charges. 


Credits. 


I — Balance  first  of  year. 
2 — All  real  estate  purchased. 
3 — New  buildings  erected  for  en- 
largement, not  replacement. 


Any  real  estate  sold. 


PATENTS. 


Charges. 

Credits. 

I— Balance  first  of  year. 
2 — Cost  of  patents  bought. 

I — Cost  of  any  patent  sold. 

2 — Any  patent  that  has  expired, 
or  has  become  valueless,  should  be 
closed  into  current  or  former  profit 
and  loss,  as  the  case  may  be. 

PATTERNS. 


Chargfs. 


Credits. 


Balance  first  of  year. 

It  is  believed  that  at  the  present  rate  of  pattern  making,  the  valuation  is 
not  more  than  maintained.  Therefore,  charges  should  not  be  made  to  this 
account  unless  carefully  considered. 


SU.-PENSE, 


Charges. 


I — Bad  accounts  of  prior  years. 

2 — At  end  of  year,  bad  accounts 
of  current  year. 

Credit  balance  of  this  account  re- 
duces total  of  accounts  receivable 
in  annual  statement. 


Credits. 


I — Balance  first  of  year. 

2 — At  end  of  year,  a  percentage 
on  gross  sales  of  that  year. 

3— If,  at  the  end  of  year,  there 
is  a  debit  balance,  charge  it  off  to 
former  profit  and  loss  before  charg- 
ing bad  accounts  of,  or  making 
credit  for,  current  year. 


THE  COMPLETE  COST-KEEPER. 


175 


FORMER    PROFIT    AND    LOSS. 


Charges. 


Credits. 


1 — All  losses,  not  bad  accounts, 
on  business  prior  to  current  year. 

2— Any  debit  balance  of  suspense 
account  at  end  of  year,  on  business 
of  prior  years. 

3 — Any  deductions  or  allowances 
on  business  of  prior  years. 


I — All  gains  on  business  prior  to 
current  year. 

2 — All  bad  accounts  of  prior  years 
reclaimed. 

3 — Close  to  profit  and  loss  at  end 
of  year. 


GENERAL    MERCHANDISE. 


Charges. 


Inventory  first  of  year. 


Credits. 


This  is  inventor}'  account  of  such 
personal  property  as  does  not  prop- 
erly belong  to  any  department  or 
warehouse.  Each  year  pass  enough 
to  profit  and  loss  to  leave  a  balance 
equal  to  inventoried  amount. 


BILLS    RECEIVABLE. 


BILLS    DISCOUNTED. 


Charges. 


1 — Notes  receiv- 
ed. 

2 — Notes  indors- 
ed. 

These  in  red  ink. 


Credits. 


Charges. 


These  are  entered  to  both  B.  R. 
and  B.  D. 

I — Paid  at  office.  I    i — Taken  up  by 
2 — Paid  at  bank.!  us. 

!    2 — Paid  at  bank. 


Credits. 


I — Notes  dis- 
counted. 

2 — Notes  indors- 
ed. 

Discounted  notes 


10                                             bills  payable. 

Charges, 

Credits, 

Payment  of  note  or  time  voucher. 

Notes  or  time  vouchers  given. 

1 1                                              voucher  book. 

Charges. 

Credits. 

4 : 

I — From  cash  book. 
2 — From  journal ; 
and  deductions. 


bills  payable 


All  vouchers  drawn.  Vouchers 
for  ledger  accounts  are  entered  in 
red  and  on  both  sides,  for  number 
record  only,  and  are  not  included  in 
footings.  Other  voucher  footings 
are  posted  to  debit  of  various  ac- 
counts as  distributed.  Total  of  the 
vouchers  standing  open  is  a  liability. 


1/6 


THE  COMPLETE  COST-KEEPER. 


Charges. 


Credits. 


I — Balance  first  of  year.  Cash  paid;  extended  into  appro- 

2 — Casli  received  ;    extended  into  i  priate  source  column, 
appropriate  location  column.  | 


13 

ADVERTISING. 

Charges. 

Credits. 

All  amounts  paid  for  advertising. 

Close  into  general  expense  at  end 
of  year. 

14 

TRAVELING. 

Charges. 

Credits. 

All  amounts  paid  for  traveling. 

Close  into  general  expense  at  end 
of  year. 

15                                                 TELEGRAPH    AND    TELEPHONE. 

Charges. 

Credits. 

Telegraph  and  telephone  service. 

Close  into  general  expense  at  end 
of  year. 

16 

INSURANCE. 

Charges. 

Credits. 

Insurance  on  plant. 

Close  into  general  expense  at  end 
of  year. 

17 

WATER    RENT. 

Charges. 

Credits. 

Bills  for  water. 

< 

Close  into  general  expense  at  end 
of  year. 

18 

TAXES. 

Charges. 

Credits. 

One  year's  taxes  on  plant. 


Close  into  general  expense  at  end 
of  year. 


THE  COMPLETE  COST-KEEPER. 


177 


19                                                                      WATCHMAN. 

Charges. 

Credits- 

Wages  of  watchman. 

Close  into  general  expense  at  end 
of  year. 

20                                                               OFFICE    SALARIES. 

Charges.                     i                     Credits. 

Salaries    of    employees    in    main 
office,  draughting  office,  and  general 
officials. 

Close  into  general  expense  at  end 
of  year. 

2 1                                                                              BARN. 

Charges. 

Credits. 

All  wages  and  expenses  of  yard 
gang,  team  and  locomotive  crane. 

Close  into  general  expense  at  end 
of  year. 

22                                                                  LEGAL    SERVICE. 

Charges. 

Credits. 

Attorney's  fees  and  similar  items. 

Close  into  general  expense  at  end 
of  year. 

23                                                                      STATIONERY. 

Charges. 

Credits. 

Printed  matter,  blank  books,  post- 
age, etc. 

Close  into  general  expense  at  end 
of  year. 

24                                                                 BOND    INTEREST. 

Charges. 

Credits. 

Interest  on  bonds  for  one  year. 

Close  into  general  expense  at  end 
of  year. 

25                                                          PLANT    MAINTENANCE. 

Charges. 

Credits. 

I — Inventory  first  of  year. 

2 — All  expenses  incurred  in  m^n- 
taining  the  value  of  the  plant,  ex- 
cept that  of  tools  and  machinery; 
that  expense  is  chargable  to  the  de- 
partment in  which  the  repaired  tool 
is  located. 


Close  into  general  expense  at  end 
of  year,  enough  to  leave  a  debit 
balance  equal  to  inventory  at  last  of 
year. 


178 


THE  COMPLETE  COST-KEEPER. 


26 


DISCOUNT    AND    IVTEREST. 


Charges. 


Credits. 


I — All  discount  or  interest  paid. 
2— All    allowances    to    customers 
for  early  payment. 


I — All  deductions  from  purchases 
for  cash  discount. 

2 — All  discount  or  interest  re- 
ceived. 

3 — Close  into  general  expense  at 
end  of  year. 


27 


BRANCH    EXPENSE. 


Charges, 


Credits. 


Expenses  of  each  branch.  (These 
branch-expense  accounts  are  to  have 
separate  headings  for  each  branch, 
and  expenses  kept  separate.) 


Close  into  general  expense  at  end 
of  year. 


28 


sundry  exp-^-nses. 


Charges. 


C  REDns. 


All  expenses  not  otherwise  classi- 
fied. 


Close  into  general  expense  at  end 
of  year. 


29                                                           ELECTRIC 

lighting. 

Charges 

Credits. 

All  amounts  paid  f.or  general  elec- 
tric illumination. 

Close  into  general  expense  at  end 
of  year. 

30 

general 

EXPENSE, 

Charges. 

Credits. 

Charged  with  following 

accounts 

Close  at  end  of  year  into  depart- 

at end  of  year: 

ment  loss  and  gain  accounts,  in  pro- 

Advertising, 

portion  to  amount  of  material  and 

Traveling, 

labor  converted  into  sales  in   each 

Telegraph  and  'Phone, 

department. 

Insurance, 

Water  Rent^ 

Taxes, 

Watchman, 

Legal  Services, 

Barn, 

Office  Salaries, 

, 

Stationery, 

Bond  Interest, 

Plant  Maintenance, 

Sundry  Expense, 

Discount  and  Interest, 

Branch  Expense, 

Electric  Lighting, 

THE  COMPLETE  COST-KEEPER. 


179 


31 

LABOR    PAID. 

Charges. 

Credits. 

Amotint  of  wages  paid. 

At  end  of  year  close  into  labor 

payable. 

32 

LABOR    PAYABLE. 

Charges. 

Credits. 

At  end  of  year  amount  from  labor 
paid  account. 


Credit  this  account  each  pay-day, 
and  charge  following  accounts 
amount  of  pay-roll: 

Machine-shop  productive  labor. 
Machine-shop  unproductive  labor. 
Boiler-shop  productive  labor, 
Boiler-shop  unpn  ductive  labor, 
Foundry  productive  labor. 
Foundry  unproductive  labor. 
Smithy  productive  labor, 
Smithy  unproductive  labor, 
Bam  account, 
Office  salaries. 
Watchman, 
Plant  maintenance. 
Warehouse. 


33 


MACHINE    SHOP    PRODUCTIVE    LABOR. 


Charges. 


Credits. 


Wages  paid  to  all  employees  in 
machine  shop,  working  on  material 
entering  into  product. 


Close  at  end  of  year  to  machine- 
shop  loss  and  gain  account. 


34 


MACHINE  SHOP  UNPRODUCTIVE  LABOR. 


Charges. 


Crfdits. 


Close  at  end  of  year  into  machine- 
shop  loss  and  gain  accoimt. 


Wages  paid  foreman,  clerks,  de- 
partment engineer,  and  unproduc- 
tive helpers. 


35 


boiler    shop    PRODUCTIVE    LABOR. 


Charges. 


Credits. 


Wages  paid  to  all  employees  in 
boiler  shop,  working  on  material 
entering  into  product. 


Close  at  end  of  year  into  boiler- 
shop  loss  and  gain  accoant. 


i8o 


THE  COMPLETE  COST-KEEPER. 


36                                        BOILER    SHOP    UNPRODUCTIVE    LABOR. 

Charges. 

Credits, 

Wages  paid  foreman,   clerks,  de- 
partment engineer,  and   unproduc- 
tive helpers. 

Close  at  end  of  year  into  boiler- 
shop  loss  and  gain  account. 

27                                               FOUNDRY    PRODUCTIVE    LABOR. 

Charges. 


Wages  paid   to  all   molders   and 
core-makers. 


Credits. 


Close  at  end  of  year  into  foundry 
loss  and  gain  account. 


38 


FOUNDRY  UNPRODUCTIVE  LABOR. 


Charges. 


Credits. 


Wages  of  foreman,  men  not  mold- 
ers or  core-makers,  department 
engineer,  and  all  pattern  shop  labor. 


Close  at  end  of  year  into  foundry 
loss  and  gain  account. 


39 


smithy  PRODUCTIVE  LABOR. 


Charges. 


Credits. 


Wages  of  all  men  working  on  ma- 
terial entering  into  product. 


Close  at  end  of  year  into  smithy 
loss  and  gain  account. 


40 


smithy  UNPRODUCTIVE  LABOR. 


Charges. 


Wages  of    men  not  working   on 
mr.terial  entering  into  product. 


Credits. 


Close  at  end  of  year  into   smithy 
loss  and  gain  account. 


41 


warehouse. 


Charges. 


Credits. 


1 — Inventory  first  of  year. 

2 — All  purchases  intended  for  use 
in  various  departments,  as  requisi- 
tioned. 

3 — Wages  of  storeroom  clerk  and 
laborers. 


I — All  goods  furnished  depart- 
ments on  requisitions. 

2 — Close  into  profit  and  loss  ac- 
count at  end  of  year  enough  to 
leave  a  debit  balance  equal  to  the 
current  inventory. 


THE  COMPLETE  COST-KEEPER. 


i8i 


42 


FREIGHT. 


Charges. 

Credits. 

All  freight  and  express  charges 

At  end  of  year  following  accounts 

paid 

are  charged  as  per  freight  distribu- 

tion book  : 

P.  &  S.  O.  W.  engine  sales. 

•    P.  &  S.  O.  W.  boiler  sales. 

Our  O.  "VV.  engine  sales, 

Branch  O.  W.  engine  sales. 

Our  O.  W.  boiler  sales, 

Branch  boiler  sales. 

M.  S.  general  sales. 

B.  S.  general  sales. 

Branch  engine  sales. 

Smithy  sales, 

Branch  O.  W.  boiler  sales. 

Foundry  sales. 

Branch  smithy  sales. 

Purchase  freight. 

Branch  foundry  sales, 

Sundry  expense. 

Personal   accounts  (during  year). 

Any  other  sales  accounts,  treated 

separately. 

43 


SALES. 


Charges 

Credits. 

At  end  of  year  amounts  from  sales- 

During  year,  by  all,  sales  charged 

distribution  book  are  credited  fol- 

on ledger. 

lowing  accounts: 

P.  &  S.  oil  well  engine  sales. 

Our  oil  well  engine  sales. 

Branch  engine  sales. 

Machine-shop  general  sales. 

P.  &  S.  oil  well  boiler  sales. 

Our  oil  well  boiler  sales, 

Branch  boiler  sales, 

Boiler  shop  general  sales. 

Branch  smithy  sales. 

Smithy  sales, 

Branch  foundry  sales. 

Foundry  sales. 

Branch  0.  W.  engine  sales. 

Branch  O.  W.  boiler  sales, 

Any  other  sales  accounts  treated 

separately. 

1 82 


THE  COMPLETE  COST-KEEPER. 


44 


COMMISSIONS    PAYABLE. 


Charges. 


Credits. 


I — A|  end  of  year  by  charges  to 
commissions-paid  account. 

2 — D  uri  n  g  year  difif  eren  ce  between 
commission  on  gross  sales,  as  cred- 
ited this  account,  and  that  on  net 
sale,  credited  commissions  paid  ac- 
count. 


Commissions  on  gross  account  of 
all  commission  sales.  Charge  to 
following  accounts  : 

P.  &  S.  oil  well  engine  sales. 
Our  oil  well  engine  sales. 
Branch  engine  sales,  (separate,) 
Machine-shop  general  sales, 
P.  &  S.  oil  well  boiler  sales, 
Our  oil  well  boiler  sales, 
Branch  boiler  sales,  (separate.) 
Boiler-shop  general  sales. 
Smithy  sales. 
Foundry  sales. 

Any  other  sales  accounts  (treated 
separately.) 


45 


commissions  paid. 


Charges. 

Credits. 

Commissions  credited  individuals. 

Close    into    commissions-payable 
account  at  end  of  year. 

46 


p.     &.     S.     O.     W.     ENGINE    sales. 


Charges. 


I — Returns  and  deductions. 
2 — Comniissions. 
3     Delivery  freight. 
4 — Close  into  M.-S.  loss  and  gain 
account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


47 


OUR    O.     W.     ENGINE    SALES. 


Charges. 


Credits. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  M.-S.  loss  and  gain 
account. 


Credit  from  sales  account  at  end 
of  year. 


48 


branch  engine  sales.        (Each  page  treated  separately.) 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3— Delivery  freight. 
4 — Close  into  M.-S.  loss  and  gain 
account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


THE  COMPLETE  COST-KEEPER. 


183 


49 


MACHINE-SHOP    GENERAL    SALES. 


Charges. 

Credits. 

I— Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  M.-S.  loss  and  gain 
account. 

Credit  from  sales  account  at  end 
of  year. 

50 


p.     &    S.     O.     W.     BOILER    SALES. 


Charges. 


Credits. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  B.-S.  loss  and  gain 
account. 


Credit  from  sales  account  at  end 
of  year. 


51 


OUR  o.   w.   boiler  sales. 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  B.-S.  loss  and  gain 
account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


52      branch  boiler  sales.      (Each  branch  treated  separately.) 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  B.-S.  loss  and  gain 
account. 


Credits. 


Credit  from  sa?.es  account  at  end 
of  year. 


53 


boiler  shop  general  sales. 


Charges. 


Credits. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4— Close  into  B.-S.  loss  and  gain 
account. 


Credit  from  sales  account  at  end 
of  year. 


1 84 


THE  COMPLETE  COST-KEEPER. 


54 


Charges. 


Credits. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  smithy  loss  and  gain 
account. 


Credit  from  sales  account  at  end 
of  year. 


55   BRANCH  o.  w.  ENGINE  SALES.     (Each  branch  treated  separately.) 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4— Close  into  M.-S.  loss  and  gain 
account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


56  branch  o.  w.  boiler  sales.     (Each  branch  treated  separately.) 


Charges. 


Credits. 


I— Returns  and  deductions. 
2 — Commissions. 
3— Delivery  freight. 
4 — Close  into  smithy  loss  and  gain 
account. 


Credit  from  sales  account  at  end 
of  year. 


57      BRANCH  smithy  SALES.    ( Each  branch  treated  Separately. ) 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close  into  smithy  loss  and  gain 
account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


58    BRANCH  FOUNDRY  SALES.      ( Each  branch  treated  Separately. ) 


Charges. 


I — Returns  and  deductions. 
2 — Commissions. 
3 — Delivery  freight. 
4 — Close    into    foundry  loss    and 
gam  account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


THE  COMPLETE  COST-KEEPER. 


185 


59 


FOUNDRY    SALES. 


Charges-. 


I — Returns  and  deductions. 
■z — Commissions. 
3 — Delivery  freight. 
4 — Close   into    foundry  loss    and 
gain  account. 


Credits. 


Credit  from  sales  account  at  end 
of  year. 


6o 


PURCHASE    FREIGHT. 


Charges. 


Credits 


Amount  transferred  from  freight 

account  at  end  of  year. 


I — Amount  of  freight  deductions 
charged  voucher  account  during 
year. 

2— Close  into  purchase  account  at 
end  of  year. 


61 


purchase. 


Charges. 

Credits. 

I — All  material  purchased  outside 

At  the  end  of  year  the  purchase- 

distributed  on  purchase-distribution 

distribution  book  is  footed,  and  the 

book. 

various  amounts  are  charged  to  fol- 

2 — Freight  paid  on  same  ;  taken 

lowmg  accounts: 

from    purchase    freight  account  at 

Machine-shop  purchase, 

end  of  year. 

Machine-shop  maintenance, 

Boiler-shop  purchase, 

Boiler-shop  maintenance, 

- 

Foundry  maintenance, 

Foundry  pig. 

Foundry  coke. 

Foundry  scrap. 

Smithy  purchase, 

Smith V  maintenance, 

Barn  account, 

Plant  maintenance, 

Sundry  expense. 

* 

Warehouse, 

(All  purchases  are  distributed  with 

freight  added.) 

62 


machine-shop  purchase. 


Charges. 


I — Inventory  first  of  year. 
2 — Material  purchased  outside  for 
use  in  manufactured  product. 


Credits. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventorv. 


i86 


THE  COMPLETE  COST-KEEPER. 


63 


BOILER-SHOP    PURCHASE. 


Charges. 


I — Inventory  first  of  year. 
2 — Material  purchased  outside  for 
use  in  manufactured  product. 


Credits. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventory. 


64 


SMITHY    PURCHASE. 


Charges. 


Credits. 


I— Inventory  first  of  year. 
2 — Material  purchased  outside  for 
use  in  manufactured  product. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventory. 


65 

FOUNUKY    PiG. 

Charges. 

Credits. 

I — Inventory  first  of  year. 
2 — Purchases  of  pig  iron. 

Close  into    department    loss  and 
gain  account  at  end  of  year  enough 
to  leave  a   debit  balance   equal  to 
current  inventory. 

66 


foundry  coke. 


Charges. 

Credits. 

I — Inventory  first  of  year. 
2 — Purchases  of  coke. 

Close  into  department    loss    and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventory. 

67 


foundry  scrap. 


Charges. 


I — Inventory  first  of  year. 
2 — Purchases  of  scrap. 


Credits. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventory. 


68 


foundry  maintenance.      (  Material. ) 


Charges. 


I— Inventory  first  of  year. 
2 — Unproductive    material 
purchase  account. 


from 


Credits. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to- 
current  inventory. 


THE  COMPLETE  COST-KEEPER. 


187 


69 


MACHINE-SHOP    MAINTEXAN'CE.        (  Material.  ) 


Charges. 


I — Inventory  first  of  year. 
2 — Unproductive     material    from 
purchase  account. 


Credits. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
current  inventorv. 


70 


BOILER-SHOP  MAixTEXANXE.      (  Material.) 


Char  es. 


Crfdits. 


I — Inventory  first  of  year. 
2 — Unproductive    material 
purchase  accouut. 


\       Close  into   department    loss  and 
from  ,[  gain  account  at  end  of  year  enough 
to   leave   a   debit    balance  equal  to 
amount  of  current  inventorv. 


SJtiTHY    MAINTENANCE.        (  Material.  ) 


Charges. 


Credits. 


I — Inventory  first  of  year. 
2 — Unproductive     material    from 
purchase  account. 


Close  into  department  loss  and 
gain  account  at  end  of  year  enough 
to  leave  a  debit  balance  equal  to 
amount  of  current  inventorv. 


72 


MACHINE-SHOP    LOSS    AND    GAIN. 


Charges. 


Credits. 


I — Department  purchases  of  pro- 
ductive material. 

2 — Transfer  of  productive  mate- 
rial from  other  departments. 

3 — Deprrtment  purchases  of  pro- 
ductive labor. 

4 — Transfer  of  productive  labor 
from  other  departments. 

5 — Department  purchases  ot  un- 
productive material. 

6 — Transfer  of  unproductive  ma- 
terial from  other  departments. 

7 — Department  purchases  of  un- 
productive labor. 

8 — Transfer  of  unproductive  l.ibor 
from  other  departments. 

9 — Proportion  of  general  expense. 

10 — Close  at  end  of  year  into  profit 
and  loss. 


I — All  sales  from  each  sales  ac- 
count entered  separately. 

2 — All  productive  material  fur- 
nished to  other  departments. 

3 — All  productive  labor  furnished 
to  other  departments. 

4 — All  unproductive  material  fur- 
nished to  other  departments. 

5 — All  unproductive  labor  fur- 
nished to  other  departments. 


1 88 


THE  COMPLETE  COST-KEEPER. 


73 


BOILER-SHOP    LOSS    AND    GAIN. 


Charges. 


I — Department  purchase  of  pro- 
ductive material. 

2 — Transfer  of  productive  mate- 
rial from  other  departments. 

3 — Department  purchases  of  pro- 
ductive labor. 

4 — Transfer  of  productive  labor 
from  other  departments. 

5 — Department  purchases  of  un- 
productive material. 

6 — Transfer  of  unproductive  ma- 
terial from  other  departments. 

7 — Department  purchases  of  un- 
productive labor. 

8 — Transfer  of  unproductive  la- 
bor from  other  departments. 

9 — Proportion  of  general  expense, 
lo — Close  at  end  of  year  into  profit 
nnd  loss. 


Credits. 


I — All   sales  from   each  sales  ac- 
count entered  separately. 

2 — All    productive    material    fur- 
nished to  other  departments. 

3 — All  productive  labor  furnished 
to  other  departments. 

•  4 — All  unproductive  material  fur- 
nished to  other  departments. 

5 — All     unproductive    labor    fur- 
nished to  other  departments. 


74 


FOUNDRY    LOSS    AND    GAIN. 


Charges. 


Credits. 


I — Purchases  of  foundry  pig. 

2 — Purchases  of  foundry  coke. 

3 — Purchases  of  foundry  scrap. 

4 — Department  purchases  of  pro- 
ductive labor. 

5 — Department  purchases  of  un- 
productive material. 

6 — Transfer  of  unproductive  ma- 
terial from  other  departments. 

7 — Department  purchases  of  un- 
productive labor. 

8 — Transfer  of  unproductive  labor 
from  other  departments. 

q — Proportion  of  general  expenso. 
10 — Close  at  end  of  year  into  profit 
and  loss. 


I — All  sales  from  each  sales  ac- 
count, entered  separately. 

2 — AH  productive  material  fur- 
nished to  other  departments. 

3— All  productive  labor  furnished 
to  other  departments. 

4— All  unproductive  material  fur- 
nished to  other  departments. 

5  -All  unproductive  labor  fur- 
nished to  other  departments. 


THE  COMPLETE  COST-KEEPER. 


x89 


75 


SMITHY    LOSS    AND    GAIX. 


Charges. 

Credits. 

I — Department  purchases  of  pro- 

I — All  sales  from  each  sales  ac- 

dnctive material. 

count,  entered  separately. 

2 — Transfer  of  productive  material 

2 — AH    productive    material  fur^ 

from  other  departments. 

nished  to  other  departments. 

3 — Department  purchases  of  pro- 

3— All  productive  labor  furnished 

ductive  labor. 

to  other  departments. 

4 — Transfer  of    productive  labor 

4— All  tm productive  material  fur. 

from  other  departments. 

nished  to  other  departments. 

5 — Department  purchases  of  un- 

5— All    unproductive    labor    fur-. 

productive  material. 

nished  to  other  departments. 

6 — Transfer  of  unproductive  ma- 

terial frpm  other  departments. 

7— Department  purchases  of  un- 

productive labor. 

8— Transfer  of  unproductive  labor 

from  other  departments. 

9 — Proportion  of  general  expense. 

I  >— Close  at  end  of  year  into  profit 

and  loss. 

76 


PROFIT   AND    LOSS. 


Charges. 


Credits- 


I — Depreciation  of  tools  and  ma- 
chinery'. 

2 — Percentage  on  sales  for  bad 
debte. 

3 — Former  profit  and  loss.  (If  a 
credit,  put  on  other  side. ) 

4 — Dividends  paid. 


I — Balance  first  of  year. 

2 — Credit  from  machine-shop  loss 
and  gain. 

3 — Credit  from  boiler-shop  loss 
and  gain. 

4 — Credit  from  fotmdry  loss  and 
gain. 

5 — Credit  from  smithy  loss  and 
gain. 

6 — Credit  from  general  merchan- 
dise. (If  a  debit,  record  on  other 
side.) 

7 — Credit  from  warehouse.  (If  a 
debit,  record  on  other  side.) 

The  difference  between  the  balance  at  the  first  of  the  year,  and  at  the 
last  of  the  year  indicates  the  net  increase  or  decrease  in  worth  for  the 
year. 


iQo  THE   COMPLETE  COST-KEEPER. 

Instead  of  using  the  old  method  and  keeping  a  single  mer- 
chandise account  only,  both  purchase  and  sales  accounts  are  kept 
with  each  department.  The  disadvantage  of  the  single  merchan- 
dise account  to  which  all  goods  bought  for  a  department  are  charg- 
ed and  all  department  sales  are  credited,  is  that  any  goods  sold  and 
credited  to  the  merchandise  account  and  afterwards  returned, 
would  not  appear  as  a  diminution  of  the  sales,  but  as  an  increase 
in  the  product,  which  would  be  wholly  erroneous.  In  the  system 
here  shown  such  returns  are  charged  to  the  sales  account  to  whicli 
they  belong,  and  at  the  end  of  the  year  the  difference  only,  repre- 
senting the  net  sales  in  excess  of  all  just  charges,  is  carried  through 
the  department  loss  and  gain  account.  The  same  is  true,  con- 
versely, of  the  department  purchase  accounts. 

Labor  and  material  are  kept  separate,  so  that  at  the  end  of 
the  year  the  department  loss  and  gain  accounts  indicate  exactly 
the  quantity  of  each  consumed,  thus  making  it  possible  to  divide 
the  general  expense  either  in  the  ratio  of  the  productive  material 
and  labor  charges  of  each  department  added  together,  or  in  refer- 
ence only  to  the  productive  labor  cost  of  each  department.  The 
sum  of  material  and  productive  labor  costs  of  each  department  is 
used  in  this  system  as  the  basis  for  the  general  expense  division, 
yet  those  accountants  making  the  expense  division  upon  produc- 
tive labor  costs  only,  may  have  much  to  say  in  favor  of  their 
method.  This  is  a  matter  which  cannot  be  conclusively  considered 
here,  but  must  be  decided  by  each  factory  manager  for  himself; 
by  the  use  of  the  system  here  described  the  division  may  be  made 
either  way. 

In  order  that  the  reader,  possibly  not  possessing  an  expert 
knowledge  of  accounts,  may  be  enabled  to  readily  comprehend  the 
closing  of  the  various  accounts  specified,  by  a  process  which  aggre- 
gates their  totals  ready  for  transfer  to  the  department  loss  and  gain 
accounts,  and  thence  into  the  general  profit  and  loss  account,  an 
exposition  of  the  various  successive  steps  taken  to  procure  this 
cumulative  result,  giving  each  step  in  sequence,  is  here  detailed. 

The  accounts  are  referred  to  by  number  instead  of  by  name. 

In  closing  the  accounts  for  the  year  preparatory  to  taking  off 
an  annual  statement,  the  process  is  as  follows : 

Carry  a  percentage  upon  the  value  of  tools  and  machinery 
from  No.  t  into  No.  y6.  To  provide  for  bad  debts,  assume  and 
compute  a  percentage  upon  the  gross  sales  for  the  year,  and  credit 
this  to  No.  5  and  charge  to  No.  y6.    After  following  the  instruc- 


THE  COMPLETE  COST-KEEPER.  191 

tions  embraced  in  the  former  detail  of  profit  and  loss  account, 
carry  any  balance  remaining  in  same  at  the  end  of  the  year  from 
No.  6  to  No.  76.  Carry  a  sufficient  amount  from  No.  7  to  No.  76 
to  leave  in  number  7  a  debit  balance  equal  to  the  amount  of  general 
merchandise  inventoried. 

Carry  13,  14,  J5,  16,  17  ,18,  19,  20,  21,  22,  23,  24,  25,  26,  27, 
28,  and  29  into  30.  This  gives  total  general  expense.  Close  any 
debit  balance  of  31  into  32,  leaving  as  a  liability  in  labor  payable 
wages  due,  if  any,  from  preceding  pay-day.  Distribute  42  into  28. 
46,  47,  48,  49,  50,  51-  52,  53.  54,  55'  56,  57>  58,  59,  and  60.  Close 
60  into  61.  Distribute  61  into  21,  25,  28,  41,  62,  63,  64,  65,  66, 
67,  68,  69,  70,  and  71.  Carry  sufficient  amount  from  41  to  76  to 
leave  amount  of  current  inventory  a  debit  balance  in  storeroom 
account.  Distribute  43  into  46.  47,  48,  49,  50,  51',  52,  53,  54,  55, 
56,  57,  58,  and  59.  Qose  debit  balance  of  45  into  44,  leaving  as  a 
liability  any  commissions  owed  in  commissions-payable  account. 
Close  33,  34,  and  62  into  72.  Close  35,  36,  and  63  into  73.  Close 
37,  38  65,  66,  67,  and  68  into  74.  Qose  39,  40,  and  64  into  75. 
Transfer  46,  47,  48,  49,  55,  and  69  to  72.  Transfer  50,  51,  52,  53, 
56,  and  70  to  73.  Transfer  54,  57,  and  71  to  75.  Transfer  58  and 
59  to  74.  Distribute  30  into  72,  73,  74,  and  75,  according  to  direc- 
tions embraced  in  expense  account.  Close  72,  73,  74,  and  75  into 
76. 

The  annual  statement  should  show  in  detail  abstracts  of  the 
following  accounts,  in  order  that  the  factory  manager  may  have 
an  epitome  of  the  business  for  comparative  purposes : — 

No.  30,  General  expense. 

No.  42,  Freight. 

No.  43,  Sales. 

Management. — Managing  Partner,  Superintendent,  and  Trea- 
surer. 

Executive  Force. — Assistant  Superintendent,  Head  of  Sales 
Department,  and  Buyer.  Supervision  of  all  manufacturing.  Issu- 
ance and  control  of  all  orders  from  time  of  receipt  until  shipped. 
Direct  supervision  of  the  foreman,  and  all  elements  and  details  of 
the  executive  branch,  subject  to  orders  of  superintendent.  Makes 
propositions  for  sale  of  goods,  names  selling  price,  buys  goods, 
oversees  records  relating  to  sales,  adjusts  commissions,  maintains 
general  knowledge  of  costs,  products,  and  sales  prices  and  carries 
on  correspondence  for  the  foregoing  purposes. 


192 


THE   COMPLETE  COST-KEEPER. 


No.  44,  Commissions  payable. 

No.  6^,  Purchase. 

No.  71,  Machine-shop  loss  and  gain. 

No.  y2.  Boiler-shop  loss  and  gain. 

No.  73,  Foundry  loss  and  gain. 

No.  74,  Smithy  loss  and  gain.  , 

No.  75,  Profit  and  loss. 

He  should  also  have  the  following  forms  filled  out 


STATEMENT    OF    RATIOS,     ETC. 


Coke  used , 

Pig  iron  used 

Scrap  iron  reed 

Other  productive  material  used 

Productive  labor  used 

Unproductive  material  used 

Unproductive  labor  used 

Per  centage  of  department  unpro- 
ductive material  to  productive  material 
of  same  department 

Percentage  of  same  to  productive 
labor  of  same  department 

Percentage  of  same  to  productive 
labor  and  productive  material  com- 
bined, of  same  department 

Percentage  of  department  unproduc- 
tive labor  to  productive  material  in 
same  department 

Percentage  of  same  to  productive 
labor  of  same  department 

Percentage  of  same  to  productive 
labor  and  productive  material  com- 
bined, in  s^me  department 

Percentage  of  department  unpro- 
ductive material  and  labor  combined 
to  productive  material  in  same  depart- 
ment  

Percentage  of  same  to  productive 
labor  of  same  department 

Percentage  of  same  to  productive 
labor  and  productive  material  com- 
bined, in  same  department 

Percentage  of  general  expense  to 
productive  material  in  same  depart- 
ment      

Percentage  of  general  expense  to 
productive  labor  in  same  department. . 

Percentage  of  general  expense  to 
productive  material  and  labor  com- 
bined in  same  department,  (etc.,  etc., 
as  deemed  desirable.) 


Machine 
Shop. 


Boiler 
Shop. 


Foundry. 


Smithy. 


THE  COMPLETE  COST-KEEPER. 


193 


INVENTORY  DEC.  31,   1899. 


Machine-shop  purchase 

Machine-shop  maintenance. 

Boiler-shop  purchase 

Boiler-shop  maintenance. . . 

Foundry  maintenance 

Foundry  scrap 

Foundry  pig 

Foundry  coke 

Smithy  purchase, 

Smithy  maintenance 

Barn  account 

Plant  maintenance 

General  merchandise 

Warehouse 


Total. 


ACTIVE  ASSETS  DEC.  31,  1899. 


Cash 

Bills    receivable,  less    bills 
discounted 

Book  accounts  receivable. . 

Less  suspense 

Bills  payable 

■     1 

Book  accounts  payable 

Excess  of  active  assets . . 

NET  INCREASE  IN  WORTH  FOR  YEAR  ENDING 
DEC.  31,  1899. 


Jan.  I,  1899. 

!             Dec.  31,  i?99. 

R  eal  estate 

j 

Tools  and  machinery ; 

Patents 

! 

1 

Patterns 

Inventory 

Excess  of  active  assets 



Less  bonds 

1 

Worth 

■■ 

Actual  gain   or  loss  during 
year 

' 

i • 

i 

The  footings  of  these  two  columns  are  to  balance. 


194  THE  COMPLETE  COST-KEEPER. 

*  EARNINGS  FOR  YEAR  ENDING  DEC.  31,  1899. 


Gain. 

1 

Loss. 

Foundry  

! 

Smithy 

Machine  shop         

Boiler  shop 

%  on  sales 

%"  on  tools  and  machinery 

Variation  in  general  mdse 

*  Former  profit  and  loss 

fDividends ; 

Sundries  as  follows : 

Earnings 

1 

i 

*  Put  former  profit  and  loss  in  gain  column  if  a  debit  and  in  loss  column  if  a  credit, 
t  Put  dividends  in  gain  column. 

Foremen  of  machine  shop,  boiler  shop,  foundry,  smithy  and 
pattern  shop. 

Supply  clerk. — Charge  of  storesroom  and  stock,  keeping  re- 
cord of  purchase  prices,  entering  cost  on  cost-cards  and  inside  of 
orders,  supervising  card  register  and  transfer  books,  checking  and 
distributing  invoices  on  purchase-transfer  book. 

Accountant. — Keeps  general  ledger,  journal,  and  voucher 
book,  also  selling  side  of  sales-distribution  book,  makes  invoices 
and  statements,  makes  pay-roll  and  pay-roll  checks. 

.  Stenographer. — Does  the  typewriting,  files  the  letters,  and 
cppies  letters.  In  the  latter  she  is  assisted  by  other  clerks  at 
mailing  time.  Also  one  other  clerk  does  a  little  typewriting  occa- 
sionally. 

Clerk. — Writes  cash  book,  bills-receivable  book,  freight  book, 
commission  book,  and  consignment  book.  Makes  vouchers,  and 
commissions  reports. 

Clerk. — Assistant  superintendent's  clerk  in  order  department. 

Clerk. — Machine-shop  foreman's  clerk.  Keeps  machine-shop 
time,  makes  machine-shop  shipping  memorandums,  cost-cards,  and 
does  general  clerical  work. 

Gerk. — Timekeeper  for  boiler  shop. 

Qerk. — Boiler-shop  foreman's  clerk,  makes  shipping  memo 
randums,  cost  cards,  etc. 


THE  COMPLETE  COST-KEEPER.  195 

Clerk. — W'arehouse  cler^ ;  has  charge  of  details  of  warehouse, 
makes  deiiveries,  keeps  track  of  stock,  etc. 

Clerk. — Gatekeeper  and  warehouse  clerk.  Keeps  gate-time 
record,  does  warehouse  work,  makes  shipping  bills,  and  ships  ex- 
press goods.    Reports  receipts  of  express  and  freight  carted  in. 

Qerk. — Does  detail  on  card-transfer  books,  card  register,  pur- 
chase-transfer book,  and  makes  blue  prints. 

Cost-Clerk. — Keeps  labor-detail  book.  Collects  and  classifies 
all  labor  costs,  piece-work  prices,  etc.  Keeps  pattern-record  book, 
and  tracing  register ;  also  record  of  photographic  negatives.  Makes 
information  sheets  or  records  of  standard  data. 

Head  Draughtsman. — Supervises  draughtsmen  and  makes 
estimates  for  sales  department. 

Yard  Foreman. — Has  charge  of  all  loading,  unloading,  and 
handling  of  cars ;  has  charge  of  teamster  and  locomotive  crane. 

Yard  Carpenter. — Has  charge  of  all  alterations  and  repairs  on 
buildings,  packing  heavy  goods,  staking  and  wiring  cars,  etc. 

Office  Boy. — Copies  letters,  runs  errands,  and  delivers  papers 
periodically  between  departments  throughout  the  day. 


THE  NATIONAL  SWITCH  &  SIGNAL  COMPANY'S 
COST-KEEPING  SYSTEM. 

By  Charles  Hansel,  M.  Am.  Soc.  C.  E. 


The  National  Switch  and  Signal  Company  was  founded  in 
1888,  and  was  reorganized  in  1893  by  Mr.  Oakley  Thorne,  Presi- 
dent. Mr.  Charles  Hansel,  the  writer  of  this  article,  was  made 
Acting  Manager  in  1893,  and  became  Vice-President  and  Gen- 
eral Manager  in  June,  1894.  At  that  time  there  was  no 
cost-keeping  system  worthy  of  the  name  in  operation  at  the  works, 
and  the  need  of  an  efficient  system  was  distinctly  seen.  The  writer 
immediately  sought  such  a  system,  and,  finding  that  it  could  not 
readily  be  obtained  from  exterior  sources,  proceeded  to  apply  him- 
self to  the  production  of  an  original  system  of  cost-finding.  This 
task  proved  more  extended  than  was  anticipated,  and  the  system 
was  not  ready  for  use  until  May,  1895,  when  it,  as  now  used,  was 
installed  at  the  factory,  no  alterations  having  been  made  in  the 
general  scheme,  the  only  variation  being  a  more  minute  time  sub- 
division on  the  workmen's  time  cards.  The  only  increase  of  cleri- 
cal force  was  the  addition  of  the  cost-clerk. 

In  this  system  three  costs  are  kept :  The  flat  cost,  including 
labor  and  material  only;  the  factory  expense  cost,  which  is  the 
flat  cost  plus  the  factory  expense ;  and  the  total  cost,  which  includes 
all  expenses  of  every  kind.  These  costs  are  gathered  by  cards  and 
recorded  in  books,  the  books  being  introduced  for  differential  ex- 
positions of  the  costs,  so  that  comparisons  of  successive  results  are 
forced  upon  the  attention  of  the  manager.  The  inventory  is  made 
once  a  year  from  actual  count  and  survey.  A  quarterly  inventory 
is  made  from  the  stores  ledger.  The  results  from  the  last  year 
show  a  difference  of  only  i^  per  cent,  between  the  inventory  made 
form  the  stores  ledger  and  the  inventory  made  from  actual  count 
and  survey.  A  system  which  specifies  all  accounts  by  numbers, 
called  Key  to  Distribution  of  Vouchers,  avoids  all  possibility  of 
conveying  information  of  actual  performances  and  results  to  any 
one  not  in  possession  of  this  key.  In  all  there  are  149  sub-accounts 
under  24  general  voucher  titles  kept  on  the  ledger  under  number 
symbols. 

This  system  will  appear  very  complicated  and  formidable  to 
those  who  are  not  familiar  with  modern  factory  accoimting  sys- 

T96 


THE  COMPLETE  COST-KEEPER.  197 

terns,  because  of  the  large  number  of  sub-divisions  of  the  expense 
account,  and  because  of  the  multiplicity  of  printed  forms  employed. 

In  point  of  actual  practice,  these  many  expense  divisions  and 
many  printed  forms  are  great  time-savers  in  accounting,  besides 
giving  information  most  useful  to  the  manager,  information  which 
could  not  be  obtained  without  their  employment.  A  manager  may 
desire  to  reduce  his  expense  account,  but  he  cannot  do  so  by  sim- 
ply informing  his  subordinates  of  this  desire.  The  manager  must 
be  able  to  tell  his  subordinates  exactly  where  reductions  shall  be 
made,  and  exactly  what  those  reductions  shall  be;  the  manager 
cannot  do  this  until  he  has  divided  his  expense  account  into  its 
ultimate  elements ;  before  he  can  order  a  reduction  at  any  one 
point,  he  must  know  what  each  detail  of  his  business  costs  him. 

The  whole  case  of  expense  account  division  is  exactly  parallel 
to  the  case  of  a  boy  sorting  shop  scrap  into  boxes.  Suppose  the 
pile  of  unassorted  scrap  contains  a  hundred  different  articles :  sup- 
pose also,  that  the  boy  is  supplied  with  a  hundred  boxes,  each  one 
tagged  with  one  sample  of  a  constituent  element  of  the  scrap  pile : 
it  is  then  certain  that  the  boy  will  sort  the  scrap  accurately  and 
quickly.  But  suppose  that  the  boy  has  only  fifty  boxes  for  the 
hundred  kinds  of  scrap,  each  box  tagged  with  a  single  model,  and 
that  he  is  instructed  that  in  sorting  the  scrap  the  pieces  not  defi- 
nitely assigned  are  to  be  placed  in  the  box  tagged  with  the  model 
most  closely  approximating  the  stray — in  this  latter  case  the  sort- 
ing could  not  be  done  quickly,  nor  could  it  be  expected  that  it 
would  be  done  in  the  best  manner. 

Again,  suppose  the  foreman  wishes  to  know  what  the  scrap  is ; 
if  there  is  a  box  for  each  sort,  then  he  can  find  out  at  once  what 
there  is.  but  if  more  than  one  kind  of  scrap  is  placed  in  the  same 
box,  then  the  foreman  must  turn  the  stuflf  out  on  the  floor  and 
count  it  up,  before  he  can  know  about  it.  This  simple  example 
applies  exactly  to  the  expense-account  divisions.  If  there  is  a 
division  for  each  element  of  expense,  then  each  expense  item  is 
instantly  and  correctly  placed,  and  when  the  manager  examines 
these  expense  items  he  can  tell  exactly  how  each  one  was  created. 
But  if  there  is  any  lumping,  or  association  of  related  items,  a 
mvstery  is  at  once  created,  and  mysteries  are  of  all  things  most 
abhorrent  to  the  clean-cut  managerial  instinct,  which  feels  that 
nothing  is  so  costly  as  uncertainty,  doubt  and  hesitation. 

Many  accountants  seek  to  keep  the  total  number  of  factory 


198  THE  COMPLETE  COST-KEEPER. 

accounts  as  small  as  possible ;  this  is  unquestionably  an  error ;  the 
boy  should  have  boxes  enough  for  all  the  sorts  of  scrap,  and  the 
accountant  should  have  expense  divisions  enough,  so  that  every- 
thing paid  out  may  have  a  certain  fixed  place  of  entry  of  its  own. 

A  multiplicity  of  printed  forms  is  also  a  prime  requisite  of 
cheap  and  accurate  factory  accounting. 

The  cardinal  factor  of  good  factory  management  is  duplica- 
tion and  repetition.  All  original  work  is  costly,  and  all  original 
work  is  liable  to  contain  errors. 

When  a  correct  and  satisfactory  form  for  a  certain  account  or 
statement  has  been  devised,  it  is  simply  reckless  extravagance  to 
leave  this  form  unprinted,  and  trust  to  memory  and  reflection  to 
recall  it  when  it  is  again  demanded  for  use.  The  printed  form 
saves  original  labor  in  again  conceiving  and  writing  the  document, 
and  it  saves  mental  labor  in  another  very  important  direction — the 
satisfactory  printed  form,  after  it  is  once  devised,  insures  the  clerk 
who  fills  it  against  errors  of  omission,  and  thus  relieves  him  from 
a  constant  source  of  anxiety,  to  say  nothing  of  the  very  great  sav- 
ing of  pen-work  effected  by  the  printed  blank  form. 

Hence  it  appears  that  instead  of  increasing  the  labor  and  cost 
of  accounting  by  the  introduction  of  divided  accounts  and  printed 
forms  for  every  place  where  they  possibly  can  be  used,  these  two 
features  are  really  labor-saving  elements  which  greatly  reduce  the 
cost  of  accounting,  besides  assuring  accurate  detailed  information. 
To  leave  generalities  and  come  to  actual  practice,  it  may  be  ssid 
that  when  this  system  was  placed  in  operation  in  the  shops  it  was 
expected  that  it  would  require  a  very  considerable  increase  of 
clerical  force,  while  the  actual  outcome  was  a  saving  of  $139.00  in 
the  first  year's  clerk  hire.  It  is  also  absolutely  certain  that  the  in- 
formation collected  and  distributed  by  the  shops  could  neither  be 
obtained  nor  sent  out  without  a  very  great  increase  of  clerical  force 
if  all  possible  use  of  printed  blank  forms  were  not  made. 

From  the  general  manager's  office  in  New  York  City  all  the 
operations  of  the  factory  are  directed  in  detail.  One  part  of  the 
business  is  the  manufacturing  of  the  various  parts  in  the  shops 
at  Easton.  Another  large  portion  is  the  installation  of  completed 
plants  wherever  they  may  be  ordered  to  be  placed.  The  production 
of  such  a  system  of  account-keeping  as  shall  enable  the  manager 
in  New  York  to  minutely  direct  all  the  operations  in  the  factory, 
as  well  as  the  various  installation  operations  which  may  be  in  pro- 


'"        OF  THK 

UNIVERSITY  I 

r//£  COMPLETE  COST-KEEPER.  199 

gress  at  any  point  in  the  United  States,  requires  thought,  and  it 
is  a  matter  of  some  pride  to  the  originator  that  this  system,  evolved 
with  much  labor  and  put  into  operation  with  some  misgivings, 
proved  so  fully  adequate  to  meet  the  requirements  for  which  it 
was  devised  that  it  has  received  no  substantial  alterations  since  ir 
was  first  placed  in  use. 

The  high  pay-roll  of  the  company  carries  between  three  and 
four  hundred  names. 

The  factory  operations  include  seven  well  defined  departments 
— designing,  woodworking,  machine  construction,  drop  forging, 
blacksmithing,  founding,  and  installation. 

The  clerical  force  consists  of  six  persons :  A  head  book-keeper, 
an  assistant  book-keeper,  a  stenographer  and  typewriter,  a  ship- 
ping and  quotation  clerk,  a  storekeeper,  and  the  cost-keeper.  The 
book-keeper,  his  assistant,  the  stenographer,  the  shipping  and  quo- 
tation clerk,  and  the  stores-room  keeper,  would  be  indispensable 
even  though  there  were  no  cost-keeping  system  whatever  employ- 
ed. This  leaves  the  cost-clerk  as  the  only  charge  directly  due  to 
the  cost-keeping  system.  The  factory  books  consist  of  a  combined 
day-book  journal  and  a  ledger,  tw^o  books  only,  the  different  forms 
and  cards  used  in  carrying  out  the  cost-keeping  system  serving  for 
all  other  purposes  of  record.  The  shipping  and  quotation  clerk 
adds  to  the  usual  duties  of  a  shipping  clerk  the  making  of  quota- 
tions for  factory  orders  according  to  price  lists  furnished  him  by 
the  general  manager.  The  storekeeper  is  provided  with  a  stores- 
room  book  upon  which  he  enters  all  material  received  and  delivered 
by  his  dpartment.  It  is  the  sole  duty  of  the  cost-clerk  to  receive, 
examine,  and  compare  the  time-cards  and  to  transfer  their  aggre- 
gates to  the  proper  accounts :  he  has  an  exclusively  private  office ; 
and  is  not  permitted  to  be  interrupted ;  the  time  cards  are  kept  in 
his  office  in  sych  a  manner  as  to  enable  him  to  readily  find  anv 
order-card  for  a  considerable  period  of  time  after  the  result  shovyn 
by  a  card  has  been  entered  on  the  cost  ledger  in  his  charge. 

Words  do  not  have  always  exactly  the  same  meaning  to  dif- 
ferent individuals,  and  to  avoid  all  possibility  of  misapprehension 
the  following  partial  glossary  is  given,  defining  the  sense  in  which 
the  writer  uses  some  words  of  importance  in  this  relation. 


200  THE  COMPLETE  COST-KEEPER. 

PARTIAL    GLOSSARY    OF    TERMS. 

Advertising. — All  charges  for  pamphlets,  catalogue,  cards  in 
journals,  and  exhibits. 

Assets. — Property  of  all  kinds. 

Balance  Sheet. — A  complete  summary  of  debit  and  credit,  or 
received  and  disbursed,  balances  as  they  appear  at  a  given  date. 

Commercial  Books. — The  books  pertaining  to  the  office  ac- 
counting, such  as  the  ledger,  journal,  and  cash  book,  as  distin- 
guished from  factory  books. 

Contracts. — Such  accounts  as  require  expenditure  of  labor 
and  material  not  included  in  general  factory  orders,  such  as  the 
installation  of  work  after  material  has  been  furnished. 

Contract  Account  Book. — The  book  in  which  is  registered  all 
expenses  chargeable  to  each  contract.  The  classification  of  mate- 
rial, labor,  freight,  and  general  expenses  is  made  in  such  manner 
as  to  show  the  cost  of  each  part  of  installation.  This  book  also 
gives  a  general  description  of  the  scope  of  the  contract,  name  of 
foreman  in  charge,  date  commenced  and  finished,  and  date  pay- 
ments are  due  and  made. 

Cost  of  Production. — The  total  expenditure  incurred  in  the 
production  of  a  commodity.  This  term  is  distinguished  from 
prime  cost,  in  that  the  latter  term  does  not  cover  the  whole  cost 
of  production. 

Cost-Clerk. — The  person  who  keeps  all  time  and  compiles  the 
reports  of  stores  and  labor  expended  on  each  order. 

Depreciation. — The  falling  off  in  the  value  of  building,  ma- 
chinery, plant,  and  other  assets. 

Expense,  Law. — Expense  incurred  in  legal  fees. 

Factory  Accounting. — The  systematic  registration  of  trans- 
actions attendant  upon  manufacture. 

Factory  Pay-Rolls. — All  wages  paid  employees  in  factory, 
including  all  wages  not  covered  in  operating  pay-roll  or  installa- 
tion pay-roll. 

Fixed  Plant. — The  machinery  and  appliances  required  for 
manufacture,  and  permanently  located  in  factorv. 

Floating  Plant. — The  machinery  and  tools  .used  for  the  instal- 
lation of  work,  such  as  are  used  by  outside  foreman. 

Fixture  Account. — Of  the  furniture,  fittings,  heating,  appli- 
ances, benches,  and  shelving. 


THE  COMPLETE  COST-KEEPER.  201 

Fuel  Account. — Showing  the  summary  of  all  fuel  used  for 
any  purpose. 

General  Charges. — The  general  expenses  which  cannot  be 
directly  charged  to  any  particular  process  or  branch  of  the  busi- 
ness. 

Goodwill. — Value  of  established  trade  or  patronage. 

Installation  Wages-Record. — The  record  of  all  time  of  men 
employed  in  installing  work  outside  of  factory. 

Jigs  and  Templets. — Tools  which  are  made  for  the  manufac- 
ture of  specific  parts.  These  are  generally  considered  non-pro- 
ductive if  they  are  used  in  constantly  recurring  manufacture;  if, 
however,  the  product  for  which  they  are  designed  is  special,  the 
jig  or  templet  is  productive  and  is  charged  directly  into  the  prime 
cost.    This  must  be  indicated  in  time-return  for  this  department. 

Job. — The  number  or  name  of  the  article  manufactured,  as 
indicated  in  the  catalogue,  or  as  described  in  the  order  upon  which 
a  certain  work  is  undertaken. 

Light  Account. — All  charges  for  lighting  factory  or  offices. 

Rough  Stores. — All  material,  whether  finished  or  unfinished, 
purchased  for  the  purpose  of  manufacture. 

Material. — That  factor  in  the  cost  of  production  which  repre- 
sents the  rough  stores  used  in  the  manufacture  of  any  article. 

Material-Issued  Book. — A  factory  book  in  which  is  registered 
the  quantity  and  value  of  material  issued. 

Order. — Instructions  to  supply  material  or  work. 

Orders  Account-Book. — The  book  in  which  all  orders  received 
are  registered.  The  prime  cost  of  each  job  or  article  included  in 
the  order  is  shown  in  a  column  entitled  prime  costs.  ( See  prime 
costs). 

Operating  Pay-Record. — The  record  of  all  articles  paid  to 
employees  not  recorded  on  factory  pay-roll  or  installation  pay- 
roll. 

Patterns. — Will  be  considered  as  are  jigs  and  templets. 

Prime  Cost. — The  original  or  direct  cost  of  an  article  as 
showm  by  definite  charges  of  actual  value  of  material  and  labor 
expended,  plus  a  proportionate  percentage  of  total  expenditure  for 
unproductive  labor  and  material  disbursed  in  factory  operations. 

Stock. — As  distinguished  from  material,  those  commodities- 
which,  having  been  manufactured,  constitute  the  articles  of  trade: 
manaufactured  or  completed  parts  on  hand. 


202  THE  COMPLETE  COST-KEEPER. 

Scrap  Value. — The  minimum  value  of  articles ;  i.  e.,  the  price 
that  may  be  depended  upon  for  waste  material. 

Scrap. — The  residue  of  materials  acquired  in  the  course  of 
manufacture,  the  product  of  sale  of  which  is  credited  to  cost  of 
production. 

Stock  Debit. — A  factory  form  used  to  record  the  completion 
of  articles  manufactured  for  stock,  and  their  transfer  from  the 
factory  to  the  stock  ledger. 

Stores. — Covers  both  stock  and  material. 

Stores-Received  and  Disbursed  Ledger. — The  factory  book 
showing  quantity  and  value  of  all  stock,  and  finished  stores. 

Stores  Order. — The  instructions  to  manufacture  for  stores. 

Stores  Uncompleted. — A  register  of  articles  in  course  of 
manufacture. 

Storekeeper. — The  officer  in  charge  of  all  stock,  finished 
stores,  rough  stores,  tools,  scrap,  and  all  loose  material ;  having 
general  charge  of  receipt  and  disbursement  of  all  stores,  and  of 
shipment. 

Time-Book. — The  book  in  which  time  of  each  employee  is 
registered,  both  from  the  clock  record  and  the  individual  report 
of  each  employee  working  on  orders. 

Tools. — Instruments  which  are  not  fixed  and  which  are  of  ri 
more  or  less  permanent  nature. 

*Unproductive  Labor. — All  labor  not  directly  chargeable  to 
some  specific  order. 

♦Unproductive  Material. — All  material  disbursed,  but  not 
directly  chargeable  to  any  specific  order. 

Voucher. — Any  instrument  which  is  a  record  of  the  settle- 
ment of  any  account  and  is  a  complete  statement  of  date  obligation 
was  incurred  and  date  of  settlement. 

Wages  Record-Book. — The  book  in  which  the  name  of  each 
employee  is  registered,  with  date  of  employment,  department, 
class,  rate  of  wages,  when  employed,  when  dismissed. 

GENERAL    SCHEMF. 

All  orders  and  requisitions  for  finished  stores,  rough  stores,  or 
labor  emanate  from  the  office  of  the  superintendent.  All  sales- 
orders  are  made  on  the  storekeeper,  who  enters  same  in  the  orders 


*In  all  cases  where  labor  and  material  are  not  charjred  in  the  prime 
cost  of  any  order,  the  time  and  material  used  are  reported  as  unpro- 
ductive. 


THE  COMPLETE  COST-KEEPER.  203 

account-book,  as  specified  by  the  superintendent's  order,  it  being 
intended  that  an  account  be  kept  with  each  order,  whether  for 
stores,  contract,  or  regular  sale. 

The  storekeeper  must  report  back  to  the  superintendent  if  his 
stores  are  short  in  any  of  the  articles  mentioned  in  said  order, 
making  regular  requisition  on  superintendent  for  the  required 
stores.  It  is  intended  that  the  stores  be  kept  up  in  such  quantities 
as  to  enable  the  storekeeper  to  fill  all  orders  from  stock  in  the 
storeroom. 

The  storekeeper  makes  daily  requisitions  on  the  superinten- 
dent, based  on  the  general  condition  of  stores.  All  such  requisi- 
tions must  be  approved  by  the  general  manager,  after  which  they 
may  issue  from  superintendent's  office  as  regular  stores  orders. 
Orders  to  manufacture  are  issued  by  the  superintendent  against 
the  head  foreman  of  the  proper  department,  and  the  foreman 
makes  requisition  on  storekeeper  for  all  material  necessary  to  com- 
plete the  order,  giving  number  of  order,  etc.,  filling  out  the  regu- 
lar form  for  that  purpose. 

The  stores-received  ledger  is  the  storekeeper's  record  of  stores 
on  hand ;  each  invoice  is  recorded  with  date  of  receipt,  quantity, 
from  whom  purchased,  price,  and  such  other  information  as  is 
provided  for  in  the  ledger  form.  Two  books  are  used,  one  to  re- 
cord finished  stores,  and  one  for  rough  stores  received. 

Tally-sheets  are  furnished  the  keeper  of  the  stores-received 
ledger,  showing  the  quantity,  description,  weight,  and  disposition 
of  all  stores  received  into  the  works,  and  this  tally-sheet  is  then 
checked  with  the  bill  or  invoice  before  the  same  is  spread  upon 
the  records,  any  difference  in  quantity  or  weight  being  noted  on 
invoice,  and  sent  to  the  accounting  department  for  adjustment 
between  the  shipper  and  the  factory. 

The  stores-disbursed  ledger  shows  all  stores  and  material  dis- 
bursed to  each  order,  together  with  the  value  thereof.  Since 
values  are  constantly  changing,  all  stores  are  charged  to  each  order 
at  price  last  paid,  unless  the  market  price  is  known  to  be  higher, 
and  at  the  last  prime  cost  made  on  any  finished  stores  issued,  as 
per  stores-received  ledger. 

In  case  the  material  or  stores  issued  to  any  order  is  not  en- 
tirely consumed  on  that  order,  it  is  returned  to  stores  by  credit 
memorandum. 

After  the  order  is  charged  with  the  stores  received  the  amount 


204  THE   COMPLETE  COST-KEEPER. 

of  labor  expended  on  it  is  noted  and  placed  in  a  separate  column 
in  the  orders  or  contract  account-book,  so  as  to  be  identified  at 
any  time. 

The  manner  of  procuring  the  exact*  amount  of  time  and 
wages  chargeable  to  each  order  is  as  follows :  Each  man  is  fur- 
nished with  a  time-card  upon  which  is  printed  the  hours  and  5 
minutes,  which  also  bears  the  job  and  order  number,  and  he  is 
required  to  punch  the  hour  and  minutes  wlien  he  commenced  and 
finished  that  job  and  order.  A  visit  is  made  at  stated  periods  each 
day  by  the  timekeeper,  who  collects  the  completed  order-cards  and 
enters  them  in  a  comparative  time-book.  Each  man  upon  entering 
the  service  of  the  company  is  given  a  number,  classification,  and 
rate  of  wages,  and  is  required  upon  entering  and  leaving  the  fac- 
tory to  register  the  time  of  his  arrival  and  departure  by  plunging 
on  the  clock  at  his  proper  number.  This  automatically  registers 
the  time,  and  the  clock-records  showing  all  the  time  registered 
for  the  entire  works  are  collected  each  day  and  entered  on  the 
comparative  time-book.  Having  now  the  record  of  time  from  two 
sources,  the  clock  and  the  individual  record  as  shown  by  punching 
the  time-cards,  the  timekeeper  is  enabled  to  distribute  the  labor 
to  its  proper  orders,  and  also  determine  in  each  department  all  the 
labor  that  is  non-productive,  all  labor  being  rated  as  non-produc- 
tive which  is  not  charged  to  any  specific  order.  The  timekeeper 
having  made  this  distribution  of  time  to  the  several  orders,  fur- 
nishes this  distribution  to  the  cost-clerk,  who  enters  it  in  the  pro- 
per column  against  the  order.  This  gives  the  prime  costs  of  all 
stores,  material,  and  labor  directly  chargeable  to  any  order;  there 
hemains,  however,  a  certain  charge  for  non-productive  labor  and 
material. 

The  difference  between  the  total  pay-roll  of  the  factory  and 
the  sum  of  the  distribution  of  that  roll  among  the  several  orders 
as  before  described  and  as  furnished  to  the  cost-clerk,  is  the  total 
amount  of  unproductive  labor,  and  each  order  is  debited  with  the 
same  proportion  of  expense  that  the  amount  of  unproductive  labor 
bears  to  the  pay-roll  total.  Since  the  prime  cost  is  exactly  defined, 
what  is  covered  in  its  determination  is  readily  understood. 

The  value  of  all  stores  issued  for  a  production-order,  all  labor 
directlv  emnloved  in  its  completion,  and  the  proper  percentage  of 
all  unoroductive  labor  and  material  which  is  chargeable  to  it,  de- 
termines what  is  here  called  the  prime  cost  of  that  order. 


THE  COMPLETE  COST-KEEPER.  205 

As  before  stated,  should  there  be  any  material  left  over  after 
the  order  is  completed,  this  material  is  returned  to  the  stores  with 
a  credit  memorandum  on  the  order. 

Since  the  product  of  the  drop  forging  and  foundry  depart- 
ments may  be  finished  so  far  as  the  work  of  those  departments  is 
concerned,  and  yet  not  rate  as  finished  stores,  it  is  necessary  to 
keep  a  record  of  finished  and  unfinished  stores;  this  is  provided 
for  by  having  two  stores-received  ledgers. 

While  it  is  not  practicable  to  follow  the  exact  labor  on  each 
particular  piece  of  casting,  it  is  possible  to  determine  the  average 
cost  per  month  or  any  stated  periods  of  producing  castings  of 
different  weights.  And  having  done  this,  all  castings  received 
from  the  foundry  are  debited  to  stores  received  and  credited  to 
foundry'  account  at  a  certain  fixed  rate,  to  be  determined  by  the 
general  manager,  his  data  being  the  monthly  report  of  the  cost 
per  pound  of  each  of  the  several  weights  of  castings.  The  manner 
of  determining  the  cost  of  castings  is  as  follows : 

The  cost  per  pound  of  the  mixture  in  the  cupola ;  the  cost  per 
pound  for  fuel  and  power,  unproductive  labor,  and  material ;  the 
cost  per  pound  for  waste  between  the  cupola  and  the  finished  cast  - 
ings ;  the  cost  per  pound  for  moulding  each  specific  article,  which 
is  easily  determined,  either  from  time-rate  or  price  per  piece. 

All  stores  and  labor  for  each  department  are  charged  to  that 
department,  all  sales  shown  in  the  trading  account  of  the  com- 
mercial ledger  are  credited  so  that  the  total  trading  account  plus 
the  difference  in  value  of  stores  in  that  department,  less  the  prime 
cost,  should  show  a  profit  or  loss  equal  to  the  book  account. 

The  orders  account-book  is  provided  with  a  column  for  en- 
tering the  selling  price,  so  that  the  difference  between  totals  in 
the  column  of  prime  costs  and  the  totals  in  the  selling  price  column 
indicate  the  total  gross  profit  on  the  order,  and  it  is  from  this 
book  that  all  billing  is  made. 

Following  is  a  list  of  job  numbers  to  which  material  for 
which  no  regular  order  is  issued  is  to  be  charged.  The  object  of 
this  list  is  to  avoid  the  necessity  for  issuing  an  order  signed  by 
the  superintendent,  and  for  the  further  purpose  of  assisting  the 
completion  of  such  an  order,  when  one  is  issued,  as  by  this  means 
a  specific  order  number  always  relates  to  the  same  thing;  conse- 
quently, the  office  becomes  familiar  with  it,  and  the  number  ex- 
plains the  order  without  further  examination. 


2o6  THE  COMPLETE  COST-KEEPER. 

Example:  On  receipt  of  stores,  the  foreman  issues  order  "6i" 
for  unloading  and  handling  stores,  and  each  person  engaged  is 
furnished  with  a  time-card  marked  with  this  order  number.  No 
order  is  issued  under  this  schedule  for  labor  which  will  require 
less  than  thirty  minutes  in  performance.  This  list  is  at  present 
sub-divided  under  eighty-four  headings,  which  makes  it  possible 
to  analyze  the  labor-expense  account,  and  the  pay-roll,  with  refer- 
ence to  those  items  of  expense  which  are  made  without  issuing 
order-cards. 

List  of  job  numbers  to  which  material  and  labor  for  which 
no  regular  order  is  issued  are  to  be  charged. 
Order  No, 

1  Engineer's  time. 

2  Material  for  engines. 

3  Watchman's  time. 

4  Sweeping  and  cleaning  machine  department. 

5  Sweeping  and  cleaning  electrical  department. 

6  Sweeping  and  cleaning  foundry. 

7  Sweeping  and  cleaning  woodworking. 

8  Sweeping  and  cleaning  blacksmith. 

9  Oiling  shafting,  machine  department. 

10  Oiling  shafting,  electrical. 

11  Oiling  shafting,  foundry. 

12  Oiling  shafting,  woodworking. 

13  Oiling  shafting,  blacksmith. 

14  Unloading  coal  for  blacksmith. 
i^  Unloading  coal  for  boiler. 

16  Unloading  coal,  sand,  pig  iron,  coke,  etc.,  foundry. 

17  Material  for  placing  new  machines  ready  for  operation. 
(Give  name  of  machine). 

18  Labor  for  placing  new  machines  ready  for  operation. 

19  Material  for  making  and  repairing  shop  tools,  machine 
department. 

20  Labor  for  making  and  repairing  shop  tools,  machine 
department. 

21  Material  for  making  and  repairing  shop  tools,  electrical 
department. 

22  Labor  for  making  and  repairing  shop  tools,  electrical 
department. 


THE  COMPLETE  COST-KEEPER.  207 

23  Material  for  making  and  repairing  *shop  tools,  foundr\- 
department. 

24  Labor  for  making    and    repairing  shop  tools,  foundry 
department. 

25  Material   for  making  and  repairing  shop  tools,   wood- 
working department. 

26  Labor  for  making  and  repairing  shop  tools,  woodwork- 
ing department. 

2y     Material  for  making  and  repairing  shop  tools,  blacksmith 
department. 

28  Labor  for  making  and  repairing  shop  tools,  blacksmith 
department. 

29  Material  for  making  repairs  to  grounds,  drain  fences^ 
tracks,  walks,  etc. 

30  Labor    for    making  repairs    to    grounds,  drain  fences, 
tracks,  walks,  etc. 

31  Material  for  repairs  and  renewals  of  machinery,  machine 
department. 

32  Labor  for  repairs  and  renewals  of  machinery,  machine 
department. 

33  Material  for  repairs  and  renewals  of  machinery,  electrical 
department. 

34  Labor  for  repairs  and  renewals  of  machinery,  electrical 
department. 

35  Material  for  repairs  and  renewals  of  machinery,  foundry 
department. 

36  Labor  for  repairs  and  renewals  of  machinery,  foundry 
departenent. 

37  Material  for  repairs  and  renewals  of  machinery,  wood- 
working department. 

38  Labor  for  repairs  and  renewals    of    machinery,  wood- 
working department. 

39  Material  for  repairs  and  renewals  of  machinery,  black- 
smith department. 

40  Labor  for  repairs  and  renewals    of    machinery,  black- 
smith department. 

41  Material  for  repairing  patterns. 

42  Labor  for  repairing  patterns. 
42     Material  for  repairing  flasks. 


2o8  THE  COMPLETE  COST-KEEPER. 

44  Labor  for  repairing  flasks. 

45  Material  for  repairing  floating  equipment, 

46  Labor  for  repairing  floating  equipment. 

47  Material  to  put  on  order  stores  returned  from  contracts?. 

48  Labor  to  put  on  order  stores  returned  from  contracts. 

49  Material  for  boxing  stores  other  than  contracts. 

50  Labor  for  boxing  stores  other  than  contracts. 

NOTE : — ALL  material  and  labor  for  boxing  stores  for 
contracts  must  be  charged  against  contract  No. 

51  Material  for  repairing  offlce  furniture. 

52  Labor  for  repairing  office  furniture. 

53  Material  for  repairing  jigs,  templets,  machine  depart- 
ment. (All  new  formers,  jigs,  templets,  to  be  made  only  on  order 
from  superintendent.) 

54  Labor  for  repairing  jigs,  templets,  machine  department. 

55  Material  for  repairing  jigs,  templets,  electrical  depart- 
ment. 

56  Labor  for  repairing  jigs,  templets,  electrical  department. 

57  Material  for  repairing  jigs,  templets,  woodworking  de- 
partment. 

58  Labor  for  repairing  jigs,  templets,  woodworking  de- 
partment. 

59  Material  for  repairing  j  igs,  templets,  blacksmith  depart- 
ment. 

60  Labor  for  repairing  jigs,  templets,  blacksmith  depart- 
ment. 

61  Unloading  and  handling  stores. 

62  Labor  handling  Bushnell  work.    (Delivering  to  them.) 

63  Material  repairs  to  building  No.  i. 

64  Labor  repairs  to  building  No.  i. 

65  Material  repairs  to  building  No.  2. 

66  Labor  repairs  to  building  No.  2. 

67  Material  repairs  to  building  No.  3. 

68  Labor  repairs  to  building  N0.3. 

69  Material  repairs  to  building  No.  4. 

70  Labor  repairs  to  building  No.  4. 

71  Material  for  repairing  fixtures,  machine  department. 

72  Labor  for  repairing  fixtures,  machine  department. 

73  Material  for  repairing  fixtures,  electrical  department. 

74  Labor  for  repairing  fixtures,  electrical  department. 


THE  COMPLETE  COST-KEEPER. 


209 


75  Material  for  repairing  fixtures,  foundry. 

76  Labor  for  repairing  fixtures,  foundry. 

"jy     Material  for  repairing  fixtures,  woodworking  department 

78  Labor  for  repairing  fixtures,  woodworking  department. 

79  Material  for  repairing  fixtures,  blacksmith. 

80  Labor  for  repairing  fixtures,  blacksmith. 

81  Core  maker,  foundry. 

82  Cupola  tender,  foundry. 

83  Labor  of  all  other  kinds  in  foundry,  such  as  grinding, 
cleaning  tumblers,  etc. 

84  General  helper  in  machine  shop,  for  which  no  regular 
charge  can  be  kept. 

No  order  will  be  issued  for  any  labor  that  will  require  less 
than  thirty  minutes  in  performance. 

To  show  the  form  in  which  accounts  made  under  this  list  of 
unproductive  labor,  for  which  charges  no  order  is  issued,  are  col- 
lected and  disposed  of,  the  following  statement  of  non-productive 
labor  for  the  two  weeks  ending  November  6,  1898,  is  given,  the 
significant  figures  of  the  original  being  replaced  by  ciphers  in  this 
transcript. 


( 

1       DISTRIBUTION    OF    SHOP    PAY-ROLL    FOR  THE   TWO 

WEEKS 

ENDING  NOVEMBER  6th,  1898. 

Department. 

No.  of 
Men. 

No.  of 
Hours. 

Av.  i>er 
Hour. 

Amount 
Produc- 
tive. 

Amount 
Non-Pro- 
ductive. 

TotaL 

Perct. 
N.  P. 

Machine  Shop. 

00 

0000 

.00 

000.00 

ooo.oc     000.00 

00 

Electrical 

0 

ODD 

.0000 

00.00 

CO.  00     000.00 

00 

Shipping 

0 

000 

.0000 

0.00 

00.00       00.00 

00 

Wood  Shop 

CO 

0000 

.0000 

000.00 

00.00     000.00 

00 

Foundry  

1 

00 

0000 

.0000 

000. OO 

000.00 

1 

1  Blacksmith 

0 

000 

.0000 

00.00 

00.00       00.00 

00 

00 

0000 

.00 

0000.00      000.00    0000. CO  j 

PERCENTAGI 

■s. 

Productive 

.    .000 

Check  No. 

2509 

Non-productive 

.  .000 
.000 

Voucher  N 

3.  2406 

2IO  THE  COMPLETE  COST-KEEPER. 

Statement  of  Non-Productive  Labor  for  the  Two  Weeks 
Ending  November  6th,  1898. 

Engineer's  time 00.00 

Watchman's  time 00.00 

Sweeping  and  cleaning,  machine  department ,00 

Sweeping  and  cleaning,  electrical  department ,00 

Sweeping  and  cleaning,  woodworking  department .00 

Oiling  shafting,  machine  department 0.00 

Oiling  shafting,  woodworking  department 0.00 

Unloading  coal,  sand,  pig  iron,  coke,  etc.,  foundry 0.00 

Labor,  making  and  repairing  shop  tools,  machine  dep't.  .  00.00 

Labor,  making  and  repairing  shop  tools,  electrical  dep't . .  00.00 

Labor,  etc.,  foundry. 0.00 

Labor,  making  and  repairing  shop  tools,  woodworking 

department   00.00 

Labor,  making  and  repairing  shop  tools,  blacksmith  dep't,  .00 

Labor,  making  repairs  to  grounds,  drains,  etc 0.00 

Labor  for  repairs  and  renewals  of  machinery,  machine 

department 0.00 

Labor  for  repairs  and  renewals  of  machinery,  electrical 

department .oa 

Labor  for  repairs  and  renewals  of  machinery,  woodwork- 
ing department .00 

Labor  for  repairing  floating  equipment .00 

Labor,  boxing  stores  other  than  contracts o.oo 

Labor,  repairing  office  furniture .00 

Labor,  repairing  and  making  jigs,  templets,  etc.,  electrical 

department .00 

Labor,  repairing  and  making  jigs,  templets,  etc.,  wood- 
working department 0.00 

Unloading  and  handling  stores 00.00 

Labor,  delivering  Bushnell  work .00 

Labor  for  repairing  fixtures,  machine  department 0.00 

Labor  for  repairing  fixtures,  foundry  department 0.00 

Labor  for  repairing  fixtures,  woodworking  department. .  0.00 

General  helper  in  machine  shop,  no  charge  being  made. .  0.00 

Tool-room  clerk 0.00 

Labor,  painting  stores 0.00 

Miscellaneous 0.00 


THE  COMPLETE  COST-KEEPER.  211 

L.  Smith,  machine  department cxj.oo 

M.  O.  Scheckler,  woodworking-  department 00.00 

J.  Leahy,  shipping  department 00.00 

H.  Koch,  stock  clerk. 00.00 

Changing  special  locking  dogs 00.00 

000.00 
Less  13  per  cent,  of  watchman's  and  engineer's  time 

charged  to  foundry  productive 0.00 

$000.00 
List  of  Forms  and  Books  Used  in  the  Business. 

Form  No.         Description. 

1  Superintendent's    requisition    to    purchase,    large    and 
small. 

2  Superintendent's  requisition  on  storekeeper,  large  and 
small. 

3  Stores  memorandum,  large  and  small. 

4  Superintendent's    requisition    on    factory,    large    and 
small. 

5  Prime-cost  record. 

6  Time-cards,  white,  blue,  green,  yellow,  and  manila. 

7  Wages  record. 

8  Factory  time-sheet,  two  weeks. 

9  Piece-work  time-book  sheet.  , 

10  Piece-work  rate-book  sheet. 

11  Department  requisition  on  stores,  white,  blue,  green, 
yellow,  and  manila. 

12  Department  credit  memorandum  to  stores,  white,  blue, 
green,  yellow,  and  manila. 

13  Stores  ledger,  finished  stores. 

14  Stores  ledger,  unfinished  stores. 

15  Stores-received  record,  large  and  small. 

16  Stores  rejected. 

17  Stores  returned, 

18  Daily  cupola  report. 

19  Fuel  record. 

20  Cost  of  handling. 

21  Building  record. 


212  THE  COMPLETE  COST-KEEPER. 

22  Rfecord  of  machinery. 
23-A  Shipping.list,  large. 
23-B     Shipping  Hst,  small. 

24  Pattern  record. 

25  Jigs,  dies,  and  special  tools. 

26  Vouchers,  small. 

27  Vouchers,  large  and  small,  blue  and  yellow  for  pay- 
rolls. 

28  Piece-work,  pay-roll  voucher,  factory. 

29  Voucher  register-sheet. 

30  Voucher  address-slips. 

31  *Credit  memorandums. 

32  Large  shipping  cards  for  tacking  on  cars. 

33  


34  *Card,  contract  account  book  charges. 

35  *Card  for  keeping  account  of  catalogues,  etc.,  sent  out. 

36  *Reference  card. 

2,7  *  Contract  account  card. 

'38  *Principal  and  petty  cash  card,  weekly. 

39  Treasurer's  statement  card,  weekly. 

40  *Tenders  submitted  and  contracts  received  card. 

41  *Distribution-of-cash  card,  monthly. 

42  *Treasurer'g  daily  report  card. 

43  *Order-received  card. 

44  *Treasurer's  statement  card,  monthly. 

45  *Machines  shipped  card. 

46  *Card   for  keeping  account  of  stock,   Chicago  store- 
house. 

47  *Billing  card. 

48  Tool  lists. 

49  Superintendent's  regular  and  piece-work  time-card. 


50    

51  *Jigs,  dies,  and  special  tools  record-sheet. 

52  *  Pages  for  pattern  book. 

53  *Sheet  used  for  price  lists  and  weight  lists. 
(Unappropriated  numbers  follow  in  sequence  to) 

100    Order  blanks. 


lOI 


*  These  have  no  form  numbers. 


THE  COMPLETE  COST-KEEPER, 


213 


02 
03 

08 

09 

10 

II 

12- 

12- 

12- 

13- 
14-E 

15  ■ 

16  - 

17 


Contract  specifications. 

Acceptance  blanks. 

(Unappropriated  numbers  to) 

Foreman's  letter-head. 

Foreman's  envelopes. 

Seven  days'  notice  blanks. 

Receipt  blanks. 
A     Bill-heads,  "original,"  large  and  small. 
B     Bill-heads,  "duplicates,"  large  and  small. 
C     Bill-heads,  "triplicate,"  large  and  small. 
E     Letter,  wholes. 

Letter-heads,  halves. 


Order  acknowledgement  cards. 


19  Statement  blanks. 
20-A     Envelopes,  official  size. 

20  Envelopes,  official  size,  with  Chicago  address. 
2 1 -A     Envelopes,  large. 
21 — Envelopes,  large,  with  Chicago  address. 

22  Expense  account-sheets. 

23  Estimating  sheets. 
24-E     Envelopes,  small,  white. 

(Unappropriated  numbers  to) 
30-A     Foreman's  time-sheets. 
30-B     Foreman's  time-sheets,  extra  work  only. 

(Unappropriated  numbers  to) 

37  Extra  large  envelopes. 

38  Construction  memorandum. 

39  Proposal  memorandum. 

40    

41  Foundry  time-sheets,  large  and  small. 

42    

43  Time-register  regulations  card. 

44  Reference  catalogue  envelopes. 

The  various  printed  forms  used  in  connection  with  this  system 
of  cost-keeping  are  as  follows : 

No.  I,  Requisition  to  Purchase.    Form  numbered  one  is  issued 


214 


THE   COMPLETE   COST-KEEPER, 


Form  i. 

REQUISITION  TO  PURCHASE. 

Date P.  A.  Order  No 

To  Purchasing  Agent :  Date  ordered 

You  are  hereby  requested  to  purchase  the  following  described  arti- 
cles, to  be  delivered  to 


Ship  via. 


Quantity. 


Description. 


Remarks. 


Approved  : 


Approved : 


General  Manager. 


Superintendent. 


Form  No.  i.     Requisition  to  Purchase.     Two  sizes,  8)^  inches  wide  by 
5  inches,  and  lo  inches  up  and  down. 


THE  COMPLETE  COST-KEEPER. 


21 


Form  2. 

SUPERINTENDENT'S  ORDER  ON  STOREKEEPER. 


Order  No 

Contract  No. 


Quantity.  Catalog  No. 


Date. 


Description. 


Remarl  a. 


DIRECTIONS. 

RETURN  MEMORANDUM. 

Date  wanted 

Date  Shipped. 

1                               * 
Initial           No.       i  _ 

Ship  to  

Month. 

Day. 

Car.       I       Car.       :  Remarks. 

1 
! 

At    

1                          1 

Ship  via 

Superintendent. 

Storekeeper. 

Form  No.  2.    Superintendent's  Order  on  Storekeeper.    Two  sizes,  7  inches 
wide  by  6  inches,  and  12  inches  up  and  down. 


2i6  THE   COMPLETE   COST-KEEPER. 


Form  3. 

STORES  MEMORANDUM. 
Date 

On  Hand. 

Required. 

Description. 

Remarks. 

.  .  . 

% 

< 

Form  No.   3.     Stores  Memorandum.     Two  sizes,    7  inches  wide  by  5 
inches,  and  10  inches  up  and  down. 


THE  COMPLETE  COST-KEEPER. 


217 


from  the  general  manager's  office  to  the  purchasing  agent.  It 
may  or  not  originate  in  the  general  manager's  office,  but  all  orders 
to  purchase  must  be  approved  by  the  general  manager,  unless 
stores  are  required  during  his  absence,  in  which  case  purchase 


Form  4. 

SUPEE 
Requisition  ] 
For  Sales  Or 

JNTENDENT'S  REQUISITION 
sTo        

ON  FACTORY. 

Date 

der  No 

Quantity. 

Catalog  No. 

Plan  No. 

When  Required. 

Remarks. 

Month. 

Day. 

' 

, 

% 

The  above  reouisition  is  comnleterl 

You  are  hereby    instructed    to 
furnish  the  above  described  stores, 
and  report  when  same  are  ready 
for  delivery. 

and  r< 
Dated 

;ady  for  delivery. 


Superintendent. 

Foreman. 

Form  4.     Superintendent's  Requisition  on  Factory,  or  Production  Order. 
Two  sis^s,  6  inches  wide  by  6  inches,  and  12  inches  up  and  down. 

may  be  made  over  superintendent's  approval.  When  purcbasinjj 
agent  has  placed  his  order,  he  returns  the  requisition  to  the  super- 
intendent's office  for  file  and  check  against  invoice. 

No.  2,  Superintendent's  Order  on  Storekeeper.  Form  num- 
bered two  is  used  by  superintendent  in  ordering  stores  to  fill  all 
sales  orders,  and  represents  all  stores  sold,  whether  in  the  usual 
course  of  trade  or  on  special  contract  where  work  has  to  be  in- 


2l8 


THE   COMPLETE   COST-KEEPER. 


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stalled.  Since  it  is  desirable  to  sep- 
arate orders  from  contract  work,  the 
class  of  order  is  designated  by  su- 
perintendent, and  all  charges  against 
it  are  classified  by  storekeeper  in 
his  returns  to  cost-clerk. 

No.  3,  Stores  Memorandum. 
Form  numbered  three  is  used  by 
the  storekeeper  in  notifying  the 
superintendent  of  the  condition  of 
stores,  the  remarks  column  being 
used  to  indicate  the  specific  des- 
cription of  stores  required.  Since 
the  storekeeper  is  expected  to  keep 
up  his  quantities  as  nearly  as  may 
be  indicated  by  the  average  orders 
received,  it  is  not  expected  that  his 
memorandum  w^ill  be  a  requisition, 
but  rather  information  to  the  super- 
intendent as  to  the  condition  of 
stores,  so  that  he  may  make  neces- 
sary orders  on  purchasing  agent  to 
meet  general  requirements. 

No.  4,  Superintendent's  Requi- 
sition on  Factory.  Form  numbered 
four  is  the  superintendent's  requisi- 
tion on  factory  to  manufacture 
stores.  This  blank  is  used  to  order 
a  definite  quantity  to  fill  a  certain 
sales-order  or  for  general  stores. 
If  used  for  sales-order  the  number 
of  the  superintendent's  order  on 
storekeeper  (  form  numbered  two  ) 
will  be  entered  on  blank  after-the 

words     "Sales    Order    No.    ,'' 

Returned  finally  to  cost-clerk. 

No,  5,  Prime-Cost  Record.   Form 
numbered  five   is  a  book  form  to 


THE  COMPLETE  COST-KEEPER. 


219 


Form  6.                                    TIME  CARD 
Workman  No , 

Date . . 

1 

Date  catnta.ence<l 

H. 

7 
8 

9 
10 
II 
12 

I 
2 
3 
4 
5 
6 

Min. 

5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
5 
_S 

10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 
10 

15 
15 
15 
15 
15 
15 
15 
15 
15 
15 
15 

20 
20 
20 
20 
20 
20 
20 
20 
20 
20 
20 
20 

25 
^ 
25 
25 
25 
25 
25 
25 
25 
25 
25 

30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 

35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 

40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 

45 
45 
45 
45 
45 
45 
45 
45 
45 
45 
45 
^5 

50 
50 
50 
50 
50 
50 
50 
50 
50 
50 
50 
50 

55 
55 
55 
55 
55 
55 
55 
55 
55 
55 
55 
55 

Order  No 

Catalog  No 

Niiraber  pieces 

Operation  No 

Date  finished  

Approved, 

Foreman. 

Form  No.  6.  Workman's  Time  Card.  Size,  4%  inches  wide  by  4^3  inches  high.  Workmen 
use  a  mechanical  time-recorder  requiring  the  vibration  of  a  lever  on  entering  and  leaving 
the  shop.  In  addition  to  this  record,  each  workman  perforates  the  five-minute  time-card 
for  each  job  on  which  he  is  employed,  simply  piercing  the  card  at  the  five-minute  points 
most  nearly  representing  his  times  of  beginning  and  ending  work  on  the  job  in  hand,  the 
appropriate  order  number  being  entered  on  the  card  by  the  foreman.  When  the  work- 
man enters  the  shop  in  the  morning,  he  is  furnished  with  one  time-card,  which  he  hangs 
on  the  upper  hook  of  his  individual  time-board,  after  perforating  it  at  his  beginning 
time.  If  the  foreman  gives  the  workman  a  second  job  before  the  first  is  completed,  he 
fills  in  the  order  number  on  a  second  card,  and  hangs  this  second  card  on  the  upper 
hook.  Thus  the  workman  may  have  any  number  of  jobs  before  him,  each  order  being 
given  on  a  separate  card.  When  any  job  is  completed,  its  card  is  transferred  to  the 
lower  hook.  The  time-cards  on  the  lower  hook  are  removed  by  the  timekeeper  each 
morning,  cards  on  the  upper  hook  being  left  undisturbed. 

This  time-card  was  first  used  with  fifteen-minute  divisions,  but  is  now  changed  to  five-minute 
divisions.  After  the  cards  are  collected,  the  individual  totals  are  compared  with  the 
clock  record,  made  to  agree  therewith,  and  filed  after  charging  the  time  tp  proper  orders. 
Time  is  paid  on  the  clock  record  only. 


220 


THE   COMPLETE  COST-KEEPER. 


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THE  COMPLETE  COST-KEEPER. 


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THE   COMPLETE  COST-KEEPER. 


Form  ii.       DEPARTMENT  REQUISITION  ON  STORES. 
The  following  Stores  are  reqtiired  on  account  of  Superintent's  Order 

No 

Job  No Date 

Quantity. 

Description. 

Weight. 

Remarks. 

Received,                                         By  order  of 

Foreman.                                                 Foreman. 

Form  II.      Department  Requisition  on  Stores. 
Sise  6  inches  X  6  Inches. 


DiflEerent  Colors. 


record  the  prime  costs  on  each  article  of  manufacture.  It  is 
a  summary  of  the  total  prime  cost  of  a  specific  article,  and  is 
valuable  as  a  reference  book  of  prime  costs.  It  is  from  this  book 
that  the  storekeeper  will  enter  prime  costs  in  orders  account-book 
for  such  stores  as  are  on  hand  from  which  any  sales-order  is  filled. 
Each  article  of  manufacture  will  be  given  a  catalogue  number  or 
name,  and  will  be  assigned  a  page  or  part  of  page  in  prime-cost 
record-book,  so  that  at  any  time  the  last  prime  cost  of  any  article 
may  be  at  once  found. 

No.  6,  Workman's  Time-Card.  This  card  is  supplied  to  each 
workman,  and  he  is  required  to  account  for  his  full  time  and  make 
distribution  of  same.     In  case  he  has  worked  on  several  orderf. 


THE  COMPLETE  COST-KEEPER. 


223 


Form  12. 

DEPARTMENT  CREDIT  MEMORANDUM  TO  STORES. 

Credit Order  No Job  No with  following 

Stores  delivered 

1 

Quantity.        i              Description. 

Weight. 

Condition. 

Remarks. 

Above  described  stores  received. 

To  Sto 
Plea 
above 

rekeeper : 

50  acknowledge    receipt    of 

described  stores. 

Storekeeper. 

Foreman. 

Form  No.  12.     Department  Credit  Memorandum  to  Stores.     Size,  6  inches 
by  6  inches.     DifiEerent  colors. 

during  one  day,  he  must  use  a  separate  card  for  each  order,  and 
in  case  any  time  is  shown  which  is  not  charged  to  an  order,  it  is 
recorded  as  unproductive  labor.  The  rcord  of  time  on  the  card  is 
made  by  punching  a  small  hole  with  a  sharp-pointed  instrument 
in  the  square  representing  the  hours  and  minutes.  The  timekeeper 
collects  these  cards  each  morning,  and,  after  comparison  with  the 
clock  record,  he  enters  the  result  on  form  8. 

No.  7,  Wages  Record  Book.  This  book,  form  number  seven» 
is  used  'to  register  the  names  and  rates  of  pay  of  all  workmen, 
and  is  the  cost-clerk's  authority  for  value  of  labor  in  making  prime 
costs. 


224 


THE   COMPLETE   COST-KEEPER. 


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THE  COMPLETE  COST-KEEPER. 


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THE   COMPLETE   COST-KEEPER. 


Form  15.              STORES  RECEIVED  RECORD. 
Date 

The  following  articles  have  been  received  in  good  order  and 
deposited  in  Bin  No 

Car  IniUal. 

Car  No. 

Description. 

Received  and  renorted  b 

V 

Form  No.  15 .     Stores  Received  Record.     Two  sizes,  6  ins.  wide  X  6 
and  12  ins.  long. 


Form  16.               STORES  REJECTED  REPORT. 

Date 

To  Storekeeper : 

The  following  articles  have  been  received  in  BAD  order  and  re- 
jected.    Please  give  instructions  for  disposition. 

Car  Initial. 

Car  Number. 

Description. 

. 

Rejected 

[  bv      

Form  No.  16.     Stores  Rejected  Report.     Size,  6  inches  square. 


THE  COMPLETE  COST-KEEPER. 


227 


No.  8,  Time-Sheet.  This  form,  eight,  is  used  to  register  the 
time  of  all  work  performed  by  each  workman.  The  clock  record 
is  made  by  each  workman  plunging  his  proper  number  upon  en- 
tering and  leaving  factory.  Each  department  has  a  series  of  num- 
bers so  that  time  can  be  grouped  in  numerical  sequence.  Any  dif- 
ference between  the  daily  clock  record  and  the  workman's  time- 
card  record  is  adjusted  each  day.  Each  workman  is  given  a  page 
or  part  of  page,  so  that  his  time  may  be  distributed  to  the  several 
orders,  making  a  constant  reference  for  information  of  cost-clerk. 

No.  9,  Piece- Work  Pay-Roil.  This  form  is  used  for  register- 
ing amount  due  each  workman  for  piece-work.  The  time  of  each 
workman,  whether  on  piece-work  or  not,  is  reported  as  heretofore 


Form  17.          STORES  RETURNED  MEMORANDUM. 

D.ite  Shipped 

Date  Returned 

Shipped 

Prime  Cost 

and 
Handling. 

Return 
Value. 

Losa. 

Month 

Dav. 

Month. 

Day. 

on 
Order  No. 

JJescrlption. 



Form  No.   17.     Stores-Returned   Memorandum. 

by  6  inches  high. 


Size,    7^  inches  wide 


described  in  form  eight,  and  this  time  is  transferred  from  form 
eight  to  form  nine  to  show  comparative  value  of  workman's  time 
at  a  given  rate  per  hour  as  compared  with  given  rate  per  piece. 
This  form  may  be  used  in  any  department. 

No.  10,  Piece-Work  Rate-Book.  This  form  is  used  by  the 
cost-clerk  and  time-clerk  as  authority  for  charging  value  of  all 
piece-work  labor.  The  rate  of  each  article  is  fixed  and  authorized 
by  superintendent  or  general  manager. 

No.  II,  Department  Requisition.  This  form  is  used  between 
departments  and  the  storekeepers,  and  since  all  orders  to  manufac- 
ture originate  in  the  superintendent's  office,  his  order  number  must 
follow  all  requisitions  and  be  registered  thereon.  The  disbursing 
clerk  enters  in  the  disbursing  ledger  the  order  and  job  number 
shown  on  department  requisition,  thus  indicating  to  what  order 


228 


THE   COMPLETE   COST-KEEPER. 


Form  i8.                   DAILY  CUPOLA  RECORD. 
Date . 

Materials. 

Lbs. 

Price. 

Total. 

Niagara,  No.  i 

Niagara,  No.  2 

Shenandoah  

Silicon 

Alabama 

C.C.Hinkle  (Charcoal) 

General  Scrap 

Gate  Scrap 

Coal 

Coke 

Wood 

• 

Form  No.  18.     Daily  Cupola  Record.     Size  5  ins  wide  X  8  ins.  high. 

stores  are  distributed.  The  department  makes  manifold  copies 
of  each  requisition,  thus  avoiding  use  of  stub  memorandums.  The 
original  is  delivered  to  cost-clerk  with  prime  cost  of  all  stores 
issued  indicated.  This,  then,  is  his  authority  for  charging  order 
with  value  of  stores  used  in  filling  it. 

No.  12,  Department  Credit  Memorandum.  This  form  is  used 
by  the  department  in  returning  any  material  issued  which  has  not 
been  used  on  the  order  to  which  it  is  charged  on  disbursing  side  of 


THE  COMPLETE  COST-KEEPER. 


229 


Form  19.                                                                      FUEL  RECORD. 

Name  of  Department  using 

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store  ledger.  This  credit  memo- 
randum is  receipted  by  the  stores 
department  only  after  the  articles 
have  been  received  in  accordance 
with  credit  memorandum.  Stores- 
received  side  of  stores-ledger  is 
then  debited  and  stores-disbursed 
side  credited.  The  original  is  then 
delivered  to  cost-clerk,  to  credit 
order  previously  charged  with  stores 
issued. 

Nos.  13  and  14,  Stores-Ledger. 
This  form  is  a  regular  stores-ledger 
in  which  are  recorded  all  receipts 
and  disbursements  of  material  and 
stock,  whether  such  transfers  are 
made  on  sales  orders  or  department 
requisition.  The  stores-received 
represents  all  material  or  stock  re- 
ceived, whether  from  without  the 
works  by  purchase  or  from  the 
works  by  manufacture.  If  from 
the  first  source,  the  invoice  is  re- 
corded, after  prices  have  been  ap- 
proved by  purchasing  agent.  If 
the  stock  or  material  is  furnished 
from  the  works  it  is  charged  in  at 
the  prime-cost  value,  the  data  for 
such  entries  being  taken  from  the* 
prime-cost  record.  This  ledger  will 
then  show  at  all  times  the  quantity 
of  stock  and  material.  Each  article 
of  manufacture  will  be  given  a 
page,  and  two  books  will  be  kept, 
one  for  finished  and  one  for  unfin- 
ished stores. 

No.    15,    Stores-Received    Rec- 
ord.     This    form,    fifteen,    is    used 


230 


THE   COMPLETE   COST-KEEPER. 


Form  20.                        COST  OF  HANDLING. 

Department Date 190 . . 

Car 
Initial. 

Car 

Number 

Date  Received. 

No.  of 
Man. 

Total 
Hours. 

Rate  per 
J  our. 

Total  Charge. 

Month. 

Day. 

- 

■ 

- 

' 

i 

This  blank  must  be  filled  out  and  fastened  to  invoices  for  car  load 
lots  or  less  if  ordered,  and  signed  by  person  in  charge  of  unloading. 

1 

Form  No.  20.  •    Cost  of  Handling.      Size.  s%  inches  wide  x  6  inches  high.      After  being  filled 

this  form  goes  to  the  cost-clerk  if  on  specific  order;  to  the  purchasing 

agent  if  the  order  is  for  merchandise  for  stores. 


as  a  tally-sheet  by  stores-clerk  in  receiving.  All  articles  are  care- 
fully noted  and  recorded  on  this  tally-sheet,  which  is  the  stores 
entry  clerk's  authority  for  checking  with  invoice  and  entering  in 
stores-ledger. 

No.  i6,  Stores  Rejected.  This  form  is  used  by  receiving  clerk 
to  register  any  articles  received  in  bad  order  or  which  for  any 
reason  are  rejected.  This  is  attached  to  form  No.  15,  and  both  are 
attached  to  invoice  and  rettirned  to  purchasing  agent  for  his  infor- 
mation. 

No.  17,  Stores  Returned.  This  form,  seventeen,  is  used  in 
recording  any  stores  returned  from  customers,  which  for  any  rea- 
son are  rejected.    Such  returned  stores  are  registered  on  this  form 


THE  COMPLETE  COST-KEEPER. 


231 


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and  debited  to  stores-received  at 
return  value.  The  original  sales- 
order  is  credited  by  same  amount 
and  bill  clerk  authorized  to  render 
corrected  bill. 

No.  18,  Daily  Cupola  Record. 
This  form  is  used  in  reporting  to 
the  superintendent  quantities  used 
in  cupola.  The  return  shown  on 
this  tally-sheet  is  numbered  on 
monthly  report-sheet  and  from  this 
record  the  gross  cupola-cost  of  all 
castings  is  established.  This  gross 
cost  plus  all  other  charges  by  pay- 
roll and  foundry  supplies  gives  the 
total  productive  cost  of  monthly 
output.  The  foundry  account  is 
debited  with  this  charge  and  cred- 
ited with  all  castings  received  by 
stores,  at  a  fixed  rate  per  pound 
which  may  be  established  month  by 
month.  "^ 

No.  19,  Fuel  Record.  This 
form,  nineteen,  is  used  to  record  all 
fuel  received,  showing  cost  deliv- 
ered in  works.  This  is  a  general 
operating  expense,  except  where 
same  is  charged  directly  to  black- 
smithing,  drop  forging  and  foundry. 
The  distribution  of  fuel  is  made  so 
far  as  practicable,  leaving  little 
outside  of  power  and  heating  to 
general  operating  expenses. 

No.  20,  Handling  Record.  This 
form,  twenty,  is  used  to  show  direct 
charges  arising  from  handling  ma- 
terial, such  as  fuel,  lumber,  signal 
poles,  and  car-load  lots.  All  other 
labor  consumed  in  handling  goods, 


232 


THE   COMPLETE   COST-KEEPER. 


Form  2 

3.                              SHIPPING  LIST. 
Stores  Shipped  by  the  National  Switch  &  Signal  Co. 
Easton,  Pa., 

190.  . 

Car  No 

Via 

Car  Initial To 

Order  No ■ 

R.  R.  Order  No 

For  Plant  at 

.      Checked  with  R.  R.  Order  bv 

1 

Descrip- 
tion of 
Package. 

Quantity. 

Catalog 
No. 

Articles. 

! 

Form  No.  23.    Shipping  List.    Size  8j^  ins.  wide  X  6  ins.  and 
7  ins.  up  and  down. 

either  in  receiving  or  disbursing,  is  noted  as  unproductive,  and 
all  labor  noted  in  form  No.  20  is  charged  to  invoice  or  order  as 
the  case  may  be. 

No.  21,  Building  Record.  This  form,  twenty-one,  is  used  to 
register  the  size,  description,  and  value  of  all  buildings  included 
in  the  works.  The  original  cost  is  noted  and  all  repairs,  renewals, 
and  additions  are  recorded.  The  depreciation  charges  are  marked 
oflf  at  stated  periods  so  that  a  balance  cast  from  this  record  shows 
total  value  of  all  buildings.  This  building  record,  form  21,  is  a 
sheet  with  typewritten  headings,  there  not  being  enough  matter  to 
call  for  a  book  or  printed  form. 

No.  22,  Machinery  Record.  This  form  is  used  to  record  the 
history  of  each  machine.  It  is  not  intended  to  keep  an  account 
wit  each  machine  showing  expenditures  for  repairs  and  renewals, 
as  this  charge  is  at  present  included  in  unproductive  labor,  or  ma- 


THE  COMPLETE  COST-KEEPER. 


233 


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THE   COMPLETE   COST-KEEPER. 


Form  26.  Easton,  Pa. 

The  National  Switch  &  Signal  Co. 

To 

190. . . .  Address 


.190. 


.Dr. 


Key. 


Approved  for  payment. 


Vice.Pres't  and  Gen'l  Manager. 


I  certify  that  I  have  examined 
all  extensions,  prices  and  calcula- 
tions, and  find  them  correct,  and 
have  entered  the  .account  on  the 
books  of  the  Company,  and  the 
same  has  not  been  previously  paid. 

Treasurer  and  Purchasing  Agt. 


Received 190. .,  from  The  National  Switch  &  Signal  Co., 

, Dollars, 

in  full  for  above  account.  100 

(Sign  here.) 

Note. — The  above  receipt  must  be  dated  and  signed  by  the  party  in 
whose  favor  this  voucher  is  made,  and  returned  to  the  Treasurer.The 
National  Switch  &  Signal  Co.,  Easton,  Pa. 


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down.     Different  colors.     Printed  on  back  as  shown. 


THE  COMPLETE  COST-KEEPER.  235 

terial,  or  else  assigned  directly  to  machine-rate  per  hour  in  prime 
cost  record. 

No.  2T,,  Shipping  List.  This  form  is  used  by  the  shipping 
department  to  record  all  articles  shipped  on  each  order  of  the* 
superintendent.  This  shipping  list  is  compared  with  original 
order,  if  from  railroad  company  or  other  customer,  as  well  as  witli 
superintendent's  order,  and  the  name  of  the  individual  checking 
is  noted  on  form.  The  list  is  then  delivered  to  superintendent's 
office. 

No.  24,  Pattern  Record.  This  form  is  used  to  record  the 
prime  cost  of  all  patterns  and  tools  made.  The  right-hand  column 
shows  whether  the  prime  cost  has  been  charged  out  against  any 
specific  order.  If  not,it  is  charged  as  unproductive  and  is  itemized 
in  the  schedule  of  unproductive  work  which  forms  the  basis  of  a 
percentage  charge.  This  form  is  also  a  reference  book  and  com- 
plete record  of  patterns  and  tools  made,  and  materially  assists  in 
making  original  estimates. 

No.  25,  Jigs,  Dies,  and  Special  Tools.  This  form  is  similpx 
to  form  No.  24,  and  the  same  general  description  is  applicable. 

No.  26,  Voucher.  This  form  is  used  to  record  all  disburse- 
ments of  cash  except  for  factory  and  piece-work  pay-rolls,  as  here- 
after described.  The  distribution  of  disbursements  is  grouped 
under  twenty-three  general  divisions  called  voucher  titles.  These 
voucher  titles  are  not  shown  on  the  ledger  but  are  given  a  number 
under  which  all  subdivisions  are  registered,  and  the  ledger  ac- 
count with  each  subdivision  will  be  numbered  with  the  number  of 
the  voucher.  Thus  we  find  advertising.  No.  i.  Under  this  title 
are  five  active  divisions  and  four  blanks  for  additional  subdivi- 
sions, making  the  system  expansive. 

By  this  means  we  have  a  cross-reference.  All  subdivisions 
numbered  from  i  to  10  are  under  the  voucher  title  No.  i,  and  to 
group  these  divisions  from  the  ledger  we  take  all  accounts  under 
No.  I .  This  method  gives  the  greater  subdivision  of  ledger  ac- 
counts, being  eighty-nine  in  number,  and  at  the  same  time  reduces 
the  accounts  on  trial  balance  to  twenty-four  if  desired.  These 
forms  are  printed  on  white  paper  for  main  office  and  on  tinted  pa- 
per for  agents. 

A  key  to  this  voucher  shows  the  title  and  number  of  subdivi- 
sions under  each  voucher  title  so  that  at  any  time  the  sub-division 
account  can  be  determined  from  the  number  in  column  marked 
"Key." 


236 


THE   COMPLETE   COST-KEEPER. 


KEY  TO  DISTRIBUTION  OF  VOUCHER. 
Adopted  May  i,  1896.  Pat  in  service,  June  i,  1896. 


Voucher  Title. 


Advertising. 


Buildings 
and 


Lands. 


Draughting. 


Key-Title  of  Subdivision. 


Experimental. 


Factory  Pay-Roll. 


1  Catalogue  and  pamphlets       .     .     .     .     . 

2  Journal  cards 

3  Exhibits 

4  Photographs 

5  Entertainment 

6 

7 

8 

9 

10  Buildings,  Easton 

II 

12  Real  estate 

13 

14  Buildings,  Chicago  warehouse  .... 

15 

16 

17  Salary  and  wages,  productive,  %.  •     ■     • 

18  Salary  and  wages,  non-productive,  each 

19  Easton 

20  Supplies,  non-productive,  Chicago     .     . 

21  Plans  

22 

23 

24 

25  Blacksmith 

26  Draughting 

27  Electrical 

28  Foundry 

29  Machinery 

30  Woodworking 

31 

32 

33 

34 • 

35  Blacksmith,  productive 

36  Blacksmith,  non-productive 

37  Electrical,  productive 

38  Electrical,  non-productive 

39  Foundry 

40  Machine-shop,  productive 

41  Machine-shop,  non-productive  .     .     .     . 

42  Wood-shop,  productive 

43  Wood-shop,  non-productive 

44  Shipping  department,  productive  .     .     . 

45  Shipping  department,  non-productive    . 

46 

47 

48 

49 

50 


THE  COMPLETE  COST-KEEPER.  237 

KEY  TO  DISTRIBUTION  OF  VOUCHER— (Continued.) 


Voucher  Title. 


Fixtures  Account. 


Freight. 


Fuel. 


General  Expenses. 


Key-Title  of  Subdivision. 


51  Fixtures,  heating 

52  Fixtures,  office,  Boston     .     .     . 

53  Fixtures,  draughting    .... 

54  Fixtures,  machine-shop     .     .     . 

55  Fixtures,  electrical 

56  Fixtures,  blacksmith  shop      .     . 

57  Fixtures,  wood-shop  .  .  .  . 
53  Fixtures,  foundry 

59  Fixtures,  storeroom       .     .     .     . 

60  Fixtures,  spring-water       ,     .     . 

61  Fixtures,  office,  Chicago    .     .     . 

62 

63     •     . 

64 

65 

65  Express,  distributed  .  .  ,  . 
67  Express,  not  distributed  .  .  . 
63  Freight,  distributed  .  .  .  . 
69  Freight,  not  distributed     .     .     . 

70 

71 

72  Fuel,  power,  heat 

73  Fuel,  blacksmith 

74  Fuel,  foundry 

75 

76 

77 

78 . 

79  Stationery,  Easton 

80  Office  supplies,  Easton      .     .     . 

81  Insurance     

82  Taxes 

83  Traveling,  Easton 

84  Telegrams,  Easton 

85  Light,  Easto^ 

86  Water 

87  General  office  expenses,  Easton 

88  Stationery,  W.  agt 

89  Office  supplies,  W.  agt.      .     .     . 

90  Insurance,  W.  agt.    .     ...     .     . 

91  Taxes,  W.  agt 

92  Traveling,  W.  agt 

93  Telegrams,  W.  agt 

94  Light.  W.  agt 

95  Water,  W.  agt 

96  General  office  expense,  W.  agt. 

97 .     .     .     . 

98 

99 


Ledger 
Page. 


66, 
67 
68 
69 
70 

71 
72, 

73 
74 
75 
76 


84 
87 
90 

94 


lOD 
102 
104 
106 


III 
114 
116 

"7 
118 
120 
122 
123 
124 
126 
128 
130 
131 
132 
134 
136 

137 
138 


238  THE   COMPLETE   COST-KEEPER. 

KEY  TO  DISTRIBUTION  OF  VOUCHER— (Continued), 


General  Expenses. 
(Continued.) 


Hand  and 

Machine  Tools 
and  Supplies, 


Installation. 


Interest 


and 
Discount 


Hand  tools,  machine-shop  .  .  . 
Hand  tools,  electric  department  . 
Hand  tools,  blacksmith  .... 
Hand  tools,  wood-shop     .... 

Hand  tools,  foundry 

Hand  tools,  storeroom  .... 
Machine  tools,  machine-shop  .  . 
Machine  tools,  electric  department 
Machine  tools,  foundry  .... 
Machine  tools,  wood-shop  .  .  . 
Belting,  machine-shop  .... 
Belting,  electrical  department 

Belting,  blacksmith 

Belting,  foundry 

Belting,  wood-shop 

Belting,  storeroom 


Foundry  supplies 


35  Outsiae  pay-roll       

36  Traveling 

37  Expense,  general     .     .     .     . 

38  Floating  plant,  Easton     .     . 

39  Floating  plant,  Chicago   .     . 

40  Freight  and  cartage     .     .     . 

41  Wages,  Chicago  warehouse 


46  Interest  and  discount 

47 

48 


150 
152 
153 
154 
155 
156 

157 
159 
160 
161 
162 
164 
165 
166 
167 
168 


177 


186 
188 
194 
198 
201 
204 
208 


214 


THE  COMPLETE  COST-KEEPER.  239 

KEY  TO  DISTRIBUTION  OF  VOUCHER— (Continued). 


Voucher  Title. 


Jigs  and  Dies. 


Law. 


Machinery. 


Maintenance, 

Buildings         ! 
and  Lands.! 


Merchandise. 


Key-Title  of  Subdiyision. 


149  Jigs  and  dies,  machine-shop,  Easton 

150  Jigs  and  dies,  elec.  dept.,  Easton 

151  Jigs  and  dies,  blacksmith,  Easton     . 

152  Jigs  and  dies,  wood-shop,  Easton 

153  •     .     •     • •     • 

154 

155 

156 


157  Patents  applied  for 

158  Collections      .     .     . 

159  Legal  advice  .     .     . 

160 

161 


Machinery,  machine-shop 
Machinery,  wood-shop 
Machinery',  foiindry     . 
Machinery,  blacksmith     . 
Machinery,  electrical  .     . 


162 
163 
164 
165 
166 
167 
168 
169 
170 

171 
T72 
172 
173 
J  74 
175 
176 
177 
178 


179  Buildingfs    . 

180  Real  estate 


Shafting  and  pulleys,  machine-shop 
Shafting  and  pulleys,  elec.  dept. 
Shafting  and  pulleys,  foundry       .     . 
Shafting  and  pulleys,  wood-shop 

Shafting  and  pulleys 

Shafting  and  pulleys,  storeroom  .     . 


181 
182 
183 
184 
185 
1S6 

187 
188 
189 
190 
191 
192 
193 
194 
195 
196 


Stores,  Easton     .     .     .     . 
Stores,  electrical,  Easton 


Stores,  Chicago  . 
Stores,  installation 
Royalty       .     .     . 


Le<^;er 
Page. 


216 
2l8 

219 
220 


227 
228 
229 


232 
234 
235 

236 

237 
238 
239 

240 

241 

242 
242 

243 


248 
249 


254 

256 

260 
261 

268 


240  THE   COMPLETE   COST-KEEPER. 

KEY  TO  DISTRIBUTION  OF  VOUCHER— (Continued). 


Voucher  Title. 


Oil  and  waste. 


Operating. 


Patents  and 

Goodwill. 


Patterns. 


Key-Title  of  Subdivision. 


Petty  Cash. 


Rent. 


Trading  Account. 


197  Oil 

198  Waste .     , 

199 

200 

201    .     .     

202 

203  Salaries,  oflRce 

204  Salaries,  office 

205 

2c6 

207 

208 

209  Patents  and  goodwill  . 

210 

211  .     .     ,     

212  Patterns 

213  Flasks    

214 

215 

216 

217  H.  M.  S.,  petty  cash    .     .     , 

218  G.  H.  M.,  treas.,  petty  cash 

219 , 

220 

221 .... 

i,22 

223 

224 

225 •  •  •     •     •     • 

226  Rent,  office,  Chicago  .     .     , 

227  Rent,  storehouse,  Chicago 

228  ... 

229  .' 

230 

231  Trading  account      .     .     . 
232 

Treasury  stock    .... 

Capital  stock 

Bills  payable 

Profit  and  loss  .... 
Surplus  account  .  .  . 
Casn  account  .... 
Bills  receivable   .... 


Ledgjer 
Page. 


272 
274 


279 
280 


284 


285 
286 


288 
290 
292 


300 
301 


304 


308 

309 
310 

3" 
312 
306 
307 


THE  COMPLETE  COST-KEEPER. 


241 


242 


THE   COMPLETE   COST-KEEPER. 


(Voucher  on  back  of  Form  27.) 
Voucher  No Check  No. . 

THE  NATIONAL  SWITCH  &  SIGNAL  CO. 
Favor  of 


Address . 


For 


At. 


Month  of 19 . 

Amount,  $ 


2. 

3- 
4- 
5- 
6. 
7- 
8. 

9- 
10. 
II. 
12. 

13- 
14. 

15- 
16. 

17- 
18. 
19. 
20. 
21. 
22. 

23- 

24. 

25. 
26. 
27. 
28. 
29. 
30. 
31. 
32. 
33. 
34. 
35. 


General  Distribution. 


Advertising 

Buildings  and  Lands . 

Draughting 

Experimental 

Factory  Pay  Roll .... 

Fixture  Account 

Freight 

Fuel 


General  Expense 

Hand  Tools  and  Supplies. 

Installation 

Interest  and  Discount. . . . 

Jigs  and  Dies 

Law 


Key 


Machinery 

Maintenance  Buildings  and  Lands. 

Merchandise 

Oil  and  Waste 

Operating 

Patents  and  Good  Will 

Patterns 

Petty  Cash  Accounts 

Rent 


Trading  Account 


THE  COMPLETE  COST-KEEPER. 


243 


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THE   COMPLETE   COST-KEEPER. 


COMPANY. 

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Form  29.     (Left-hand  page.)        THE  NATIONAL  SW 

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THE  COMPLETE  COST-KEEPER.  245 


Form  30. 

Please  DATE  and  SIGN  the  accompanying  Voucher, 

and  return 

same  promptly  to  the  address  given  below. 

Tear 

oflE    the  annexed  slip,    and    use    it    as    address 

on 

return 

envelope. 

GEO.  H.  HANSEL,  Sec'y  and  Treasurer 

The  National  Switch  &  Signal 

Co. 

J 

EASTON,  PA. 

Form  No.  30.    Voucher  Address-Slips.    Printed  in  red  ink.    Size,  5  inches  wide  by  3  inches 
high.     Instruction  on  top  halt,  and   line  of  perforations  in  middle,  as  shown,  and 
gummed  on  the  back.    This  insuies  correct  mailing  address  on  vouchers  re- 
turned to  the  factorj-  by  foreman  of  installation. 

No.  27,  Pay-RoU  Voucher.  The  pay-roll  voucher  has  the 
same  distribution  of  voucher  titles  and  subdivisions,  the  form 
of  face  being  made  to  accommodate  the  necessary  data,  showing 
name  of  man,  amount  paid,  etc.  In  order  that  the  same  form  for 
back  may  be  used  on  all  vouchers  and  yet  make  it  convenient  to 
distinguish  between  the  various  vouchers  readily,  different  tints 
of  paper  are  used. 

The  pay-roll  voucher  must  be  signed  by  all  persons  regis- 
tered thereon,  whether  employed  in  factory  or  on  outside  work. 

No.  28,  Piece-Work  Pay-Roll.  This  form  is  similar  to  form 
twenty-seven,  rate  per  piece  taking  the  place  instead  of  rate  per 
hour.    It  is  also  distinguished  by  time. 

No.  29,  Voucher  Register.  This  is  in  book  form  and  has 
a  top-heading  showing  each  of  the  twenty-four  voucher  titles  as 
well  as  the  date  and  number  of  check,  and  voucher  number,  the 
right-hand  column  showing  the  date  voucher  was  returned,  re- 
ceipted, and  transaction  closed. 

No.  30,  Address  Slip.  This  slip  is  inclosed  with  all  vouch- 
ers sent  out  by  treasurer  and  is  for  the  use  of  the  person  return- 
ing voucher,  to  insure  accuracy  of  address. 

No.  31,  Credit  Memorandum.  This  form  is  used  for  credits 
covering  merchandise  returned,  allowances,  etc. 


246 


THE   COMPLETE   COST-KEEPER. 


Form  31 

Easton.  Pa loo. . 

THE  NATIONAL  SWITCH  AND  SIGNAL  CO. 

To 

Dr 

Form  No.  31.     Credit  Memorandum.     8>^  ins.  wide  X  73-^  ins.  high. 


It  often  happens  that  orders  for  the  product  of  a  factory  are 
given  by  purchasers  who  are  not  fully  informed  as  to  the  various 
details  which  go  to  make  up  their  purchase. 

Thus  a  contractor  for  road-making  might  want  a  small  com- 
plete plant  for  breaking  stone  and  fitting  it  for  his  use,  and  he 
might  order  such  a  plant  without  specifying  the  exact  style  and 
dimensions  of  engine  and  boiler  and  screens  and  so  on,  and  so 
might  find,  when  the  order  was  filled  and  his  plant  running,  that 
he  had  not  been  furnished  with  what  he  then,  with  his  knowledge 
gained  by  experience,  might  think  should  have  been  given  to  him. 
In  such  a  case,  if  there  are  deferred  payments,  the  purchaser  is 
very  likely  to  refuse  further  payment  until  his  purchase  is  made 
satisfactory,  or  if  all  payments  have  been  made,  the  dissatisfied 
buyer  commonly  demands  changes  and  substitutions,  and  these 
demands  often  result  in  highly  undesirable  legal  proceedings. 
Even  if  the  extreme  of  a  resort  to  law  is  not  reached,  very  un- 
pleasant feelings  are  created,  and  the  whole  situation  is  far  from 
what  is  desirable  to  either  seller  or  buyer. 


THE  COMPLETE  COST-KEEPER.  247 

In  the  switch  and  signal  business  the  buyer  very  seldom 
knows  exactly  what  his  purchase  includes,  and  hence,  even  if  his 
order  for  a  certain  switch  and  signal  plant  is  filled  by  the  manu- 
facturer in  the  most  painstaking  and  conscientious  manner,  the 
management  of  the  road  making  the  order  may  be  dissatisfied 
with  what  is  received,  because  in  many  instances  there  are  two 
or  more  forms  of  details  filling  the  same  office,  one  form  being 
more  costly  than  some  other,  which  cheaper  form,  however,  may 
be  fully  adapted  to  the  requirements  of  the  situation.  Ver}-  natu- 
rally the  purchaser  on  finding  he  has  not  been  supplied  with  the 
more  costly  form,  may  think  the  maker  has  failed  to  give  him 
what  he  should  have  had.  In  other  cases,  some  details  may  safely 
be  omitted  altogether,  and  in  the  absence  of  a  specific  list  of 
parts  to  be  furnished  the  maker  may  exercise  his  judgment,  and 
leave  these  not  absolutely  essential  parts  out  of  the  order;  and 
complications  may  arise  over  such  action. 

To  avoid  all  this  possibility  of  controversy  and  ill-feeling, 
the  writer  prepared  form  102,  which  is  a  contract  form  in  which 
all  details  and  dimensions  are  so  precisely  specified  as  to  leave 
-no  possible  room  for  question  as  to  the  filling  of  the  contract,  or 
the  furnishing  by  the  manufacturer  of  exactly  what  he  agreed  to 
furnish,  or  what  and  when  the  purchaser  shall  pay.  This  form 
102  is  made,  of  course,  to  fit  a  switch  and  signal  business  only, 
but  it  shows  what  is  needful  in  any  business  in  a  contract  which 
shall  avoid  all  possibilities  of  controversy,  and  that  is  a  complete 
specification  of  every  detail,  so  that  nothing  is  left  to  that  "mutual 
understanding"  which  so  often  results  in  "misunderstandings.*' 

After  this  form  102  was  made,  it  was  submitted  by  the 
writer  to  friendly  railway  officials  for  comment,  and  provoked 
the  criticism  that  its  author  had  forgotten  that  charity  begins  at 
home,  and  had  tied  himself  down  more  closely  than  he  need  have 
done — that,  in  short,  such  exact  specifications  were  unadvisable, 
for  the  manufacturer,  at  least. 

The  writer,  believing  that  a  precise  understanding  at  the  out- 
set was  the  surest  element  of  harmonious  dealing,  disregarded 
these  well-meant  warnings,  and  placed  form  102  in  use.  with  the 
most  satisfactory  results,  as  it  is  found  to  save  a  vast  amount  of 
time  and  correspondence,  and  to  insure  a  continuance  of  good 
will,  which,  to  the  seller,  is  perhaps  the  most  important  feature 


UNIVERSITY 
CALIFOt^! 


248  THE   COMPLETE   COST-KEEPER. 

of  all  commercial  transactions,  for  he  is  but  poorly  paid  for  his 
work  if  it  does  not  bring  him  continued  orders. 

There  is  no  working  difference  between  a  contract  and  a 
machine-drawing.  Both  are  ostensibly  exact  guides  for  future 
performance. 

What  would  be  thought  of  a  chief  draughtsman  who  advo- 
cated the  policy  of  leaving  part  of  the  dimension  figures  off  his 
drawings,  so  that  there  might  be  something  "to  go  and  come  on" 
in  the  shop? 

Yet  such  a  procedure  compares  precisely  with  the  practice  of 
drawing  contracts  which  are  exact  on  their  faces,  and  yet  are 
so  worded  as  to  leave  loopholes  or  variations,  not  easily  discern- 
ible by  the  non-technical  purchaser;  and  precisely  the  same  con- 
fusion and  dissatisfaction  follows  the  making  of  ambiguous  con- 
tracts which  might  be  expected  to  follow  the  shop  use  of  drawings 
from  which  part  of  the  dimension  figures  were  omitted. 

It  is  not  asserted  that  all  inexactly  drawn  contracts  imply 
the  intention  of  sharp  practice  on  the  part  of  the  manufacturer; 
in  many  cases  the  contract  is  pUlrposely  drawn  so  as  to  "leave 
some  margin" ;  in  other  cases  the  contract  is  obscure  or  indefi- 
nite simply  from  want  of  care  and  foresight ;  but  the  result  is  the 
same  in  either  case ;  there  is  an  opportunity  for  two  readings,  and 
dissatisfaction  is  certain  to  follow,  the  same  as  in  the  case  of  the 
drawing  with  the  figures  omitted. 

Very  clearly,  the  contract  should  be  as  full  and  accurate  in 
detail  as  the  drawing,  and  neither  should  be  so  made  as  to  per- 
mit more  than  one  fixed  line  of  procedure  in  execution,  for  the 
guidance,  protection,  and  final  satisfaction  of  both  manufacturer 
and  purchaser. 


THE  COMPLETE  COST-KEEPER.  249 

Form  102. 

THE  NATIONAL  SWITCH  &  SIGNAL  CO. 

Articles  of  agreement  made  and  entered  into  this „ .  .day 

of A.  D.  190    ,  by  and  between  the 

party  of  the  first  part,  hereinafter  called  the  Railroad  Company,  and 
The  National  Switch  &  Signal  Company,  of  Easton,  Penna.,  party 
of  the  second  part,  hereinafter  called  the  Signal  Company. 

Whereas,  the  said  Railroad  Company,  party  of  the  first  part,  is 
desirious  of  having  constructed  a  system  of  Signals  and  Interlocking 
for  the  protection  of  traffic  over  and  across   the   several   switches   and 

tracks,  at  or  near  the  Station  or  City  of in  the  state  of 

more  particularly  described  and  designated  in  the  accompanying  plan 

marked ,  dated which  plan  enters  into  and  is  made  a 

part  of  this  agreement. 

And  whereas,  the  said  Railroad  Company  is,  so  far  as  this  agree- 
ment is  concerned,  the  representative  of  all  the  other  Railroad  or  Rail- 
way Companies  whose  tracks,  switches,  signals,  right  of  way  or  otiier 
properties  are  shown  in  said  plan  to  be  involved  in  the  said  system  of 
Signals  and  Interlocking  for  the  protection  of  traffic  over  and  across 
the  several  switches  and  tracks. 

And  whereas,  Mr the Engfineer.  is  the 

representative  of  the  said  Railroad  Company,  so  far  as  the  direction 
of  the  construction  of  said  s>'stem  of  Signals,  etc.,  shown  in  said  Plan, 
is  concerned  ; 

WITNESSETH,  that  for  and  in  consideration  of  the  covenants 
and  agreements  hereinafter  set  forth  to  be  made  and  kept  by  both 
parties  hereto,  the  said  Signal  Company  does  hereby  covenant  and 
agree  with  said  Railroad  Company  to  furnish  all  material  and  labor, 
hereinafter  described  to  be  furnished  by  it,  and  to  execute,  construct 
and  completely  install  the  system  of  Signals  and  Interlocking  in  a 
workmanlike  manner  and  in  accordance  with  the  said  Plan  and  the 
specifications  of  even  date  herewith,  hereto  attached,  which  specifica- 
tions enter  into  and  become  a  part  of  this  agreement ; 

Provided,  however.  That  the  said  Railroad  Company  will  do  all 
Track  Work,  furnish  all  Ties  in  place,  and  prepare  all  Switches,  Derails, 
Movable  Point  Frogs,  etc.,  ready  to  be  connected  to  the  Interlocking 
Mechanism  ;  to  do  all  preliminary  grading  and  prepare  surface  of  ground 
where  connections  are  to  be  run.  to  provide  foundation  for  tower  with  sills 
and  lead-out  timbers  bolted  in  place,  before  the  Signal  Company  is  noti- 
fied to  commence  work,  to  do  all  blasting;  to  provide  proper  drainage; 
to  furnish  broken  stone,  sand  and  cement  for  concreting  crank,  compen- 
sator and  wheel  foundations  (if  concrete  is  required  in  specifications) :  to 
provide  boxing  for  pipe  and  wire  lines  across  all  streets,  through  and 
under  all  station  platforms  and  across  tracks  if  desired ;  to  provide  per- 
mits for  building  tower  and  digging  across  streets,  (if  necessary) ;  to  fur- 
nish free  transportation  over  its  own  lines  for  men,  tools' and  material, 
both  going  and  returning. 

The  said  Signal  Company  also  further  agrees  to  save  and  keep  harm- 
less the  said  Railroad  Company  against  any  loss  or  expense  by  reason  of 
any  suits  for  alleged  infringements  of  patents  which  may  arise  or  be 
caused  by  the  use  of  any  of  the  articles,  apparatus  and  machinery  to  be 
furnished  the  said  Railroad  Company  by  the  said  Signal  Company  under 
this  agreement. 


2SO  THE   COMPLETE   COST-KEEPER. 

Form  102 — (Continued). 

The  said  Railroad  Company,  for  and  in  consideration  of  the  cove- 
nants and  agreements  made  by  the  said  Signal  Company,  hereby  cove- 
nants and  agrees  to  pay  to  the  said  Signal  Company  the  following  rates 
and  prices,  to  wit : 
For  Installing  Plant,  Complete,  as  per  Specifications,     $ 

One-half  the  contract  price  to  be  paid  upon  receipt  of  the  material,  and 
the  balance  within  thirty  days  after  the  completion  of  the  work. 

In  case  the  Railroad  Company  desires  the  Signal  Company  to  fur- 
nish the  MATERIAL  ONLY,  the  same  will  be  furnished  to  meet  the  re- 
quirements of  the  specifications,  which  will  not  include  boxing,  nails  and 

paint,  for  the  sum  of  $ f.  o.  b.  Easton,  Pa.,  to  be  paid  within 

thirty  days  after  shipment  of  material. 

In  case  the  said  Railroad  Company  shall  order  the  said  Signal 
Company  to  make  any  changes  in  the  said  plan  or  specifications,  herein- 
before referred  to,  thereby  requiring  work  or  material  not  included,  con- 
templated or  specified  in  the  said  specifications  and  plan,  it  shall  make 

such  order  in  writing,  signed  by  the  said  Mr Engineer, 

or  authorized  by  him  in  writing,  and  shall  be  accompanied  by  a  plan 
clearly  specifying  the  changes  and  additions  required,  and  upon  receipt 
of  such  orders,  specifications  and  plan,  properly  signed,  the  Signal  Com- 
pany will  perform  such  work  and  furnish  such  material,  for  and  in  consid- 
eration of  the  payment  to  said  Signal  Company  by  said  Railroad  Com- 
pany of  the  cost  of  such  additional  work  and  material,  plus %  on 

the  actual  cost  of  labor,  it  being  expressly  understood  that  the  cost  of 
such  material  will  be  calculated  upon  the  actual  selling  price. 

And  it  is  also  further  mutually  and  expressly  understood  and  agreed 
by  and  between  the  parties  hereto,  that  the  said  Signal  Company  shall 

give  notice  in  writing  to  the  said  Mr Engineer,  setting 

forth  the  date  when  all  the  said  work  specified  in  this  agreement  will  be 
completed  and  ready  for  service,  said  notice  to  be  given  seven  days  in  ad- 
vance of  the  completion  of  the  work,  and  the  said  Mr 

Engineer  of  said  Railroad  Company,  upon  receipt  of  such  notice  from 
said  Signal  Company,  shall  make  an  inspection  of  the  work,  and  upon 
completion  of  same  in  accordance  with  this  agreement,  he  will  signify  his 
acceptance  of  said  work  by  filling  out  the  accompanying  Acceptance 
Blank,  whereupon  all  obligations  and  payments  which  are  attendant  upon 
the  acceptance  of  said  work  by  said  Railroad  Company,  will  be  in  force. 
And,  in  case  the  said.  Railroad  Company  shall  not  be  ready  to  put  said 
plant  into  service  at  the  time  of  its  completion,  and  shall  require  the  Sig- 
nal Company  thereafter  to  assist  in  putting  said  plant  into  service,  then 
the  said  Railroad  Company  shall  pay  the  said  Signal  Company  for  all 
such  services  the  wages  and  expenses  of  all  men  required  and  furnished 
by  the  said  Signal  Company  while  so  retained. 

It  is  expressly  understood  by  and  between  the  parties  hereto  that  the 
apparatus  to  be  furnished  and  installed  is  of  the  style  made  by  the  said 
Signal  Company,  which  is  more  particularly  described  and  illustrated  in 
the  Reference  Catalog  of  said  Company,  which  catalog  is  made  a  part  of 
this  agreement  by  reference. 

The  above  proposal  is  based  upon  present  prices,  and  will  be  subject 

to  change  after days. 

The Co. 

Faston,  Pa.  By 

The  National  Switch  &  Signal  Co, 
By 

Forward  material  to  the Co., 

Care at 


THE  COMPLETE  COST-KEEPER. 


251 


Form  102 — (Continued). 

N.  B. — Please  advise  Easton,  giving  heighth  and  width  of  all  rails 
included  within  the  limits  of  interlocking.  This  information  must  be  fur- 
nished before  any  material  can  be  shipped. 

Note. — Derails  not  included.  The  Signal  Company  will  furnish 
Single  Point  Derailing  Switches,  15  feet  long,  at  Fifteen  Dollars  ($15.00) 
each,  f.  o.  b.  Easton  or  Chicago.  It  will  be  necessary  for  Railroad  Com- 
pany to  furnish  plan  of  rail  section. 

THE  NATIONAL  SWITCH  &  SIGNAL  CO., 

EASTON,    PENNA. 

Specifications  for  the  Interlocking  and  Signal  Work  to  be  carried 

out  in  accordance  with  an  agreement  made  the ,,., 

day  of ,  A.  D.  190     ,  by  and  between  the , 

party  of  the  first  part,  and  The  National  Switch  &  Signal  Company, 
of  Easton,  Pa.,  party  of  the  second  part. 

GENERAL  SPECIFICATIONS. 

Machine.  Interlocking  Machine  to  be ,  as  illustrated, 

page *R.  C.     Frame  arranged  for 

Working  Levers  and Blank  Spaces. 


Signal 
Connections. 


Carriers. 
Tower. 


Home  Signals.. 
Distant  Signals. 
Dwarf  Signals  . 


PIPE  AND   WIRE  links. 

Pipe   Carriers  to  be anti-friction,  spaced   8  ft. 

apart.     Wire  Pulleys  spaced  24  ft.  apart. 

The  dimensions  to  be The  foundation 

for  Tower  and  Machine  with  Lead-out  Timbers  bolted  in 
place  will  be  furnished  by  the  Railroad  Company.  The 
Tower  to  be  located  as  indicated  on  plan  upon  which  the 
proposal  is  based. 

DETAILED  SPECIFICATIONS. 

MACHINE, 


Machine. 


Levers  to  be  pivoted  on  a  common  centre  spaced  5" 
centre  to  centre,  moving  through  the  same  arc  Top 
plates  and  girders  to  be  made  in  sections  for  four  and 
eight  Levers. 
Numbering  and  Levers  to  be  numbered  from  left  to  right ;  Switch 
Arrangement,  and  Lock  Levers  in  the  centre;  Signal  Levers  at  the 
end;  Blank  Spaces,  if  any,  between  the  Lock  and  Signal 
Levers.  In  making  additions  to  existing  machines,  this 
arrangement  to  be  modified  if  necessary. 

Locking  to  be  Preliminary  Latch-locking;  the  first 
act  in  the  operation  of  the  Lever  to  lock  all  conflicting 
Levers,  pages  8  and  10  R.  C. 

Machine  to  be  supported  by  frame  timbers  4''  x  10^' 
pine  upon  sill  of  5^'  x  lo^'  oak.  This  sill  to  have  its  ends 
firmly  seated  in  walls  of  foundation,  as  per  plan. 


LocKrNG. 


Pkame. 


♦  R.  C,  Reference  Catalog. 


2^2. 


THE  COMPLETE  COST-KEEPER. 


Form  102 — (Continued). 


LEAD-OUT. 


Pipe. 


Wire. 


Lead-out  for  Pipe  Connections  to  be  by  Vertical  and 
Horizontal  Cranks,  pages  26,  28,  30  and  32  R.  C.  Rock- 
ing Shafts,  if  required,  are  to  be  2)/^^^  diameter  with, 
turned  Bearings,  pages  26  and  28  R.  C. 
Lead-out  for  Wire  Connections  to  be  by  6^^,  8''''  or  lo^' 
Vertical  and  Horizontal  Wheels,  pages  26  and  32  R.  C. 
The  Wire  to  be  attached  to  the  Levers  by  adjustable  con- 
nections. 


PIPE   CONNECTIONS. 


Bends. 
Carriers 


Carrier 

Foundations. 


Pipe  and                     Main  Pipe  Lines  to  follow  the  general  directions  as 
Connections.      indicated  on  plan  accompanying  these  specifications,  and 
laid  2^^^  between  centres.     The  line  nearest  track  to  be 
from  gauge. 

Pipe  to  be  of  Iron  or  Steel,  i  inch  in  diameter ;  con- 
nections to  be  made  with  couplings  234^^  long  ;  plugs  t'^ 
long  to  fit  inside  of  pipe  and  secured  in  place  by  two  }^^^ 
round  head  rivets,  page  40  R.  C.  Couplings  not  to  be 
closer  than  8''^  to  a  Pipe  Carrier,  when  Lever  is  on  centre. 

Bends  to  be  made  in  Solid  Rod  and  not  in  pipe,  and 
no  bends  to  be  greater  than  3^' 

Carriers    to    be    Single,    or    Double     Anti-Friction, 

page R.  C,  as  specified,  fixed  to  foundations  by  lag 

screws. 

Carrier  Foundations  to  be  of  2%^^  x  8^''  oak  for  top 
and  sides  ;  2^^  x  8^^  for  bottom.  Tops  of  Foundations  to 
be.... inches  below  top  of  rail,  except  where  Pipe  Lines 
cross  tracks,  in  which  case  they  are  to  be. , .  .inches  below 
top  of  rail.  Where  Pipe  Lines  are  run  between  tracks, 
the  Foundations  may  be  made  lower  than  specified  above, 
provided  proper  clearance  is  maintained.  ( Clearance  to 
be  specified  by  the  Railroad  Company.) 

Bell  Cranks  to  be  of  Wrought  Iron,  fixed  in  suitable 
Cast  Iron  Stands  and  secured  to  Foundations  by  Bolts 
and  Lag  Screws  of  suitable  lengths ;  Vertical  Cranks  by 
^^^  bolts,  Horizontal  and  Box  Cranks  by  %_^^  Bolts  and 
Lag  Screws,  pages  28  and  42  R.  C. 

Crank  Foundations  to  be  of  4'^  x  12''^  oak  for  tops  and 
sides;  2'''' x  12''' bottoms.  Foundation  to  be  fixed  in  con- 
crete, unless  otherwise  specified,  to  be  set  so  that  centre 
line  through  long  way  of  Foundation  will  bisect  angle 
made  by  connections. 

All  lengths  of  Pipe  over  100  ft.  to  be  compensated. 
An  additional  Compensator  to  be  provided  for  all  lengths 
over  700  ft.  Each  Switch,  Lock  and  Signal  (if  pipe  con- 
nected) to  be  properly  compensated.  Compensators  to 
be  of  Lazy  Jack  pattern,  fixed  to  Foundation  by,?^'''  bolts 
and  lag  screws  of  suitable  length.  Compensating  Levers 
and  Bell  Cranks  to  be  used  as  Compensators,  if  conven- 
ient. The  amount  of  Pipe  pushed  must  equal  that 
pulled  and  vice  versa. 
Compensator  Compensator  Foundations  to  be  of  4'''  x  12'''  oak  for 

Foundations,     tops  and  sides;  2'^  x  12^'  bottoms.     Foundations  to  be 
fixed  in  concrete,  unless  otherwise  specified. 


Cranks. 


Crank 
Foundations. 


Compensators. 


THE  COMPLETE  COST-KEEPER. 


253 


Form  102 — (Continued). 


Adjusting 
Screws. 


Jaws  and 
Pins. 


Switches. 


Switch  and 
Lock  Move- 
ments. 


Facing  Point 
Locks. 


Detector  Bars 


Wire. 


Wire  Eyes  and 
Split  Links. 


Pulleys. 


Means  for  adjustment  to  be  provided  for  Switches, 
Switch  and  Lock  Movements,  Facing  Point  Locks,  De- 
tector Bars,  etc.  Adjusting  Screws  or  Screw  Jaws, 
page  40  R.  C.,  to  be  used,  unless  adjustment  is  provided 
for  by  some  other  means. 

Plain,  Wide,  Double  and  Slotted  Jaws,  to  be  of 
Wrought  Iron,  fitted  with  Standard  Pins  3^''  diameter. 
Centre  pin  of  Cranks  to  be  standard  i^i^'  diameter,  page 
40  R.  C. 

switches,  etc. 

Switches,  Single  and  Double  Slip  and  Movable  Point 
Frogs  to  be  operated  by  Pipe  with  Jaw  and  Pin  Connec- 
tion to  Head  Rod,  or  by  Threaded  Rod,  with  Jam  Nuts, 
passing  through  Head  Rod  Lug. 

Switch  and  Lock  Movement,  page  62  R.  C,  to  be 
operated  by  Pipe  and  fixed  to  a  4'^  Oak  Foundation,  se- 
curely bolted  to  three  ties,  extending  beyond  the  rail, and 
and  bolted  through  a  %'^  x  6''  Iron  Gauge  Plate  extend- 
ing under  both  rails,  to  insure  relative  position,  page 
60  R.  C. 

Facing  Point  Locks  to  be  operated  by  Pipe,  the 
plunger  casting  of  which  is  fixed  on  tie  outside  of  rail 
and  bolted  through  a  %'''  x  b'^  Iron  Gauge  Plate  extend- 
ing under  both  rails.  Lock  Rod  to  be  jointed,  page  54 
R.  C.  Plunger  to  have  a  bltmt  end,  and  to  clear  lock  rod 
not  less  than  i^',  nor  more  than  i}£^\  when  in  normal 
position.  Stroke  to  be  not  less  than  7^".  Each  facing 
point  lock  to  be  fitted  so  that  it  will  not  be  possible  for 
Plunger  to  enter  hole  of  lock  rod  if  Switch  or  Moveable 
Point  Frog  is  ^^^^^  open  in  either  position. 

Detector  Bars  to  be  located  as  shown  on  accompany- 
ing plan  and  to  be  45  ft.  long,  placed  outside  of  rail  and 
to  work  in  a  plane  slightly  inclined  from  the  vertical 
toward  the  rail.  12  Rail  clips  to  each  regular  45  ft.  bar 
pages  52  and  54  R.  C.  If,  at  switch  points,  clips  cannot 
be  clamped  to  base  of  rail,  they  are  to  be  fastened  by 
bolting  to  flange.  Bar  to  rise  not  less  than  ^^^  above  top 
of  rail.  End  clips  to  be  not  more  than  12''  from  ends 
of  bar. 

WIRE  connections; 

All  Main  Wire  Lines  to  follow  general  direction 
as  indicated  on  plan  accompanying  these  specifications. 
The  line  nearest  track  to  be from  gauge  line. 

The  Wire  to  be  Single  Strand  No.  9  Galvanized 
Steel,  furnished  in  5  ft.  coils.  Tensile  strength  of  not 
not  less  than  1300  lbs.,  with  an  elongation  of  from  4% 
to  ?>%.     Standard  Telegraph  Splice  to  be  used. 

Where  Wire  joins  a  Chain,  Clevis  or  Adjusting 
Screw,  a  Wire  Eye,  and  Split  Link  to  be  furnished.  A 
Lap  Joint  to  be  made  over  Wire  Eye,  Split  Links  to  be 
of  Steel  and  have  their  ends  well  hammered  down  to 
prevent  fouling. 

Wire  Pulleys  to  be  made  with  Malleable  Frames 
and  Cast  Iron  Wheels,  page  46  R.  C,  fixed  to  founda 
tions  or  stakes  by  2}^"  No.  12  Wood  Screws. 


254 


THE  COMPLETE  COST-KEEPER. 


'Form  102- (Continued). 

Stakes.  Stakes  to  be  3^'X4'^X4  ft,  Oak,  pointed  and  driven 

firmly  into  the  ground. 

Chain  Wheels.  Chain  Wheels  to  be  Cast  Iron,  8^^  outside  diameter, 

page  48  R.  C.  To  be  fastened  to  foundations  by  %^'y, 
3'^  Lag  Screws. 

Wheel  Founda-  Wheel  Foundations  to  be  of  2%'^X  \o"  Oak  for  tops 

TiONS.  and  sides,  2^^X8^^  bottoms.     To  be  set  as  far  as  possi- 

ble, so  that  center  line  through  long  way  of  Foundation 
will  bisect  angle  made  by  connections. 

Chain.  Chain  to  lae  Y^'^  proof,  and  not  to  be  spliced  with 

Split  Links  if  Splice  is  to  pass  around  Chain  Wheels. 

Compensators.  Wire   Compensators  not  to    be  furnished   except 

where  specified. 

Adjustment.  Wire  Adjusting  Screws,  page  32  R.  C,  to  be  pro- 

vided for  each  line  of  wire  and  placed  in  Tower  above 
floor  line  with  right-hand  threads  uppermost . 

SIGNALS. 

Signals.  Signals  to  be  fixed  as  shown  on  accompanying  plan 

and  of  the  Standard  Semaphore  Type,  pages  74,  76,  78, 
80,  108,  112  R.  C. 

Poles.  Standard  Signal  Poles  to  be  Y'  square  at  top  and 

not  less  than  \o"  square  at  bottom.  Bracket  Signal 
Main  Pole  to  be  12^^  square,  and  Bracket  Poles  Y'^ 
square,  page  78  R.  C. 

Height  of  Arms.  The  lowest  arm  to  be  not  less  than  24  ft.  above  top 

of  rail.  Cross-arm  or  Bracket  Signals  to  be  not  less 
than  21  ft.  above  top  of  rail.  One  and  Two-arm  Signals, 
standard  height,  to  be  fixed  not  less  than  5  ft.  and 
Three-arm  and  Bracket  Signals  not  less  than  6  ft.  deep 
in  ground. 

Lamps.  No.  8  round  Lamps  to  be  furnished  with  each  Sig- 

nal, unless  otherwise  specified. 

Torpedo  Signals.  Torpedo  Signals,  pages  124,  126  and  142  R.  C,  to 
be  furnished  when  so  specified. 

Selectors.  Selectors  to  be  fixed  either  in  Tower  or  on  ground 

and  operated  by  Pipe  Connections,  between  the  Lever 
and  Selector. 


Boxing. 


Painting  Tower. 


Machine. 


Pipe  Lines,  Cranks,  Pipe  Compensators,  Chain 
Wheels  and  Wire  Lines  on  Pipe  Carrier  Foundations, 
to  be  boxed,  except  across  tracks,  through  Streets  and 
Station  Platforms.  Boxing  to  be  of  White  or  Yellow 
Pine,  sides  2^^X8^^,  tops  not  less  than  i)^^^  thick.  Mov- 
able Covers  to  be  provided  for  all  Cranks,  Compensat- 
ors, Wheels,  Selectors  and  Lead-out. 
painting. 

The  inside  of  Tower,  excepting  Floor  to  be  fin- 
ished in  hard  oil.  All  outside  Wood-work  to  receive 
one  coat  priming  and  two  coats  finishing  in  Color  to  suit 
the  Railroad  Company. 

All  unfinished  parts  of  Machine,  except  that  part  of 
the  Lever  above  the  Latch  Rod  Spring  Box,  the  Tap- 
pets, Locking  Bars  and  Dogs,  to  be  painted  two  coats  of 
Asphaltum  Paint.  The  Levers  and  Latch  Rods  be- 
tween the  Latch  Rod  Spring  Box  and  Handle  to  be 
painted  as  follows : 


THE  COMPLETE  COST-KEEPER, 


255 


Form  102 — (Continued). 

Machine.  Switch  Levers Black 

Switch  and  Lock  Levers,  Upper  half,  Blue  ;  Lower 
half.  Black 

Lock  Levers Blue 

Frog  Levers Yellow 

Signal  Levers,  Home  and  Dwarf Red 

Signal  Levers,  Distant Green 

Spare  Levers White 

Unfinished  part  of  Latch  Handle  (inside)  to  be 
painted  same  color  as  Lever. 
Signal  Arms.  Signal  Arms  to  be  given  one  coat  of  priming  and 

two  finishing  coats,  as  follows  : 

Home  Signals,  English  Vermilion  on  face  side,  with, 
white  stripe  t'^  wide,  center  of  sjtripe  18'''  from  outer 
end.  White  on  reverse  side  with  black  stripe,  same 
width  and  location  as  white  stripe. 

Dwarf  Signals,  English  Vermilion  on  face  and  white 
on  reverse  side  ;  no  stripe. 

Distant  Signal,  dark  lawn  green  on  face  side,  with 

V  shape  white  stripe  6^^  wide,  edges  parallel  to  end  of 

arm  and  15^^  from  same.     White  on  reverse  side  with. 

black  stripe,  same  width  and  location  as  white  stripe. 

Posts  and  Iron  Posts  to  be  gtyen  one  priming  and  two  finishing 

Work.  coats  of . . .  1 .^aint  to  three  feet  above  top  of  rail, 

below  that;  to  be  fainted  black.     All  iron  work  to  be 
painted  two  coats  black  asphaltum. 
Pipe  Lines.  Pipe  Lines  and  all    Iron  Work,  except   Detector 

Bars  and  finished  parts,  to  be  painted  one  coat  metallic 
oxide. 
Boxing.  Boxing  to  be  painted  one  coat  metallic  oxide. 

GENERAL. 

Cotters.  •         Cotters  to  be  properly  opened.     No  half  Cotters, 

Wire  or  other  substitutes  to  be  used. 

Bolts.  Bolts  to  be  so  fixed  that  they  can  be  readily  reached 

by  a  wrench  to  tighten  them. 

Concrete.  Concrete  to  be  of  good  quality  cement,  clean  sharp 

sand,  and  stone  that  will  pass  through  a  2'^  ring  ;  in  the 
proportion  of,  one  of  cement,  two  of  sand  and  three  of 
stone,  to  be  turned  over  twice  dry  and  then  well  mixed 
together  with  the  smallest  possible  quantity  of  water. 
Concrete  to  be  not  less  than  18''  deep  from  top  of  Foun- 
dations and  levelled  off  flush  with  top. 

Plans.  Diagram  of  tracks,  two  copies,  one  for  tower  and 

the  other  for  Railroad  Company's  record,  one  Locking- 
Sheet,  one  Dog  Diagram  and  two  Manipulation  Sheets 
to  be  furnished  by  Signal  Company, 
railroad  company. 

Railroad  Com-  The  Railroad  Company  will  do  all  Track  Work, 

pany  to  Furnish,  furnish  all  Ties  in  place  and  prepare  all  Switches,  De- 
rails, Movable  Point  Frogs,  etc.,  ready  to  be  connected 
to  the  Interlocking  Mechanism ;  to  do  all  preliminary 
Grading  and  prepare  surface  of  ground  where  connec- 
tions are  to  be  run,  before  the  Signal  Company  is 
notified  to  commence  work  ;  to  do  all  Blasting ;  to  pro- 
vide proper  drainage ;  to  provide  foundation  for  Tower 
with  Sills  and  Lead. out  Timbers  bolted  in  place  ;  to  fur- 


256 


THE  COMPLETE  COST-KEEPER. 


Form  102 — (Continued). 


nish  Broken  Stone,  Sand  and  Cement  for  Concreting 
Crank,  Compensator  and  Wheel  Foundations  (if  con- 
creting is  required  in  specifications),  to  provide  Boxing 
for  Pipe  and  Wire  Lines  across  all  Streets,  through  and 
under  all  Station  Platforms  and  across  tracks  if  desired; 
to  provide  Permits  for  building  Tower  and  for  digging 
across  streets  (if  necessary);  to  furnish  Free  Transport- 
ation, over  its  own  lines,  fo,r  Men,  Tools  and  Material, 
both  going  and  returning. 


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Form  139.                               PROPOSAL  MEMORANDUM. 

Plan Date Estimate  No Date . . 

At                        

Crossing  of 

With 





Description. 

P.C. 

j     Pro- 
\  posal. 

JNo. 
I 

Description. 

Material,  Mechanical  Iron. . . 

!....!.. 

Active  Levers 

\A\^       T      0.,TZ>,.0 

Heavy  Boxing 

' 

•  •  •  -Dl^^l,    C^o^^c                                                                                            1 

Foundations  and  Stakes 

Switches,  Single 

Poles                            

Boxing,  Paint  and  Nails 

"                        blip 
"          Double    " 



Labor  Mechanical.       

Extra  Material 

"          Slip  and  M.  1-.  r 

M.  P.  F.  Only 

Derails 

Concreting 

Painting  Poles 

Facing  Point  Lo 

pV<:                                                  ' 

Cartkge  and  Handling 

Superintendence,  Plans, etc.. 
Railroad  Fares 

Bolt  Locks,  Single 

Traveling  Expenses 

'•         ' '      Double 1 

Royalty 

Selectors 

Mechanical  Slots 

Crossing  Bars 

Bridge  Locks 

Bridge  Coupler 

Engine  Locks '. 

Freight  Material  Iron  . 

Foundations 

... 

Totals 

Fontaine  Crossings 

TOWER. 
Complete,  with  foundation. 
Complete,  without        " 
Size  of  Tower 

SigTials. 

No. 
Arms. 

How 
Connected 

..        ■  ■ 

Totals 

.< 

.  .4.  . 

— 

=:: 

•  •  •  •  ^1 

"       Half  Bracl 
"        Bracket. 

if^\ 

Machinery  only,  f.o.b.  works 
Plans,  etc 

.  .  2  .  . 

.  .3.  . 

Tntflle 

' 



Distant        . .    . . 

.    4.. 

l_i 

L 

=r 

^= 

.  .  I .  . 

' '      Bracket 

■  I .  . 

Trunking,  Stakes  and  Paint. 

Dwarf 

.  .1  .  . 

.  .2.  . 

Poles 

Pot 

Labor 

Torpedoes 

Supt.  and  Plans 

Electrical. 

Traveling  Expenses 

R.  R.  Fare 

Relays 

Switches 

Block  lustrum  ts 
Staff 
Annunciators. . . 

Freight  

Locks 

Royalty 

Sienals 

.'. 

Repeaters 

Totals 

S.ots  



Note. — Machinery  only  includes  everything  except  poles,  ioundations,  stakes,  lumber,  point  and  nails. 

Form  No.  139.  Proposal  Memorandum.  This  form  is  used  to  note  the  detailed  items  of  each  tender  to  fttmlsb 
finished  product. 

With  a  system  of  minutfly  sub-divided  cost-keeping,  "estimating"'  becomes  purely  mechanical,  demanding, 
instead  of  unusual  powers  of  memory  and  foresight,  only  ordinary  clerical  ability.  Here  follow  the  totals  of 
five  C'  )nsecutive  estimates  with  their  actual  costs,  taken  at  random' from  the  file  of  contract  synopsis  cards,  des- 
cribed later. 

Estimated  Cost  Actual  Cost 

$2307.00  $2297.00 

837.00  801.00 

1606.00  1567.00 

1521.00  1588.00 

1153.00  112700 

Each  of  these  estimates  includes  installation  of  the  plant  sold;  this  installation  is  an  outdoor  job,  Tsubject  io 
variations  due  to  soil,  accessibility,  and  the  weather.  The  installation  cost  is  a  matter  of  estithate — a  guess, 
founded  on  past  experience  ;  in  most  casrs  the  installation  estimate  is  high  ;  in  this  one  ca.«e  it  is  low,  thus 
stiowing  the  impossibility  of  accurate  guesswork,  even  when  the  guesser  has  had  large  experience  in  the  line 
which  forms  \\\':  subject  of  speculation. 


26o 


THE  COMPLETE  COST-KEEPER. 


CARD  FORMS. 

For  descriptive  purposes  these  cards  are  alphabetically  desig- 
nated. The  card  forms  constitute  a  complete  exposition  of  the 
business  of  the  concern. 

Card  "A"  is  for  the  principal  cash  on  one  side — on  the  reverse 
side,  petty  cash.  This  card  is  filled  at  the  end  of  each  week  and 
transmitted  from  the  factory  to  the  general  manager. 

Card  *'B/'  treasurer's  statement  of  current  account,  is  filled 
out  each  week  and  transmitted  to  the  general  manager. 


Form  38. 

A 

PRINCIPAL  CASH. 

•          Week  Hnding .■ ,  19 . . 

Date. 

Received. 

Disbursed. 

To  Total  Cash  Reported 

' '  Deposited 

1 

By  Total  Cash  Reported 

"  Accounts  Paid 

•'  Petty  Cash 

"  Balance  Bank  of  America 

"         "        Northampton  Co,  Bank 

Totals 

Card  A.     Principal  Cash. 


PETTY  CASH. 
Week  Endinfj ,  19  . 

Date. 

Received. 

• 

Disbursed. 

fo  Total  Cash  Reported 

"  Cash  Sales 

"  Received  from  Principal  Cash 



! 

By  Total  Cash  Reported 

"       "         "       Expended 

"    Balance  on  hand 

Totals. 

' 

Card  A.     Petty  Cash. 


THE  COMPLETE  COST-KEEPER. 


261 


Form  39.                TREASURER'S    STATEMENT. 

Current. 

•;                                  j 

Resources,  liabilities    1 

:•                     1 

1  •           •  i 

Cash  Balances 

'r 

Bank  of  America 

\"\ 



Northampton  Co.  Nat'l  Bank  . . 

Petty  Cash  Treasurer 





1 

Bills  Receivable             

Acc'ts  Receivable.  Prev'ly  Rep. 
Orders  Billed 

; 



i 





Contracts  Billed 



Accounts  Paid 

Sundry  Credits 

Sundry  Debits 

i 

Accounts  Receivable 

! 

..n 

Accounts  Payable       

!! 

Oakleigh  Thorne  Dept.  Agent.! 
Bills  Audited     1 

|i 

,  .    • 

Bills  not  Audited       i 



Bills  Payable.     Notes.  . .             i 

Totals.  1 

' 

"  1 

Card  B.    Front  and  Back. 


TREASURER'S  STATEMENT. 

j 

1 

1 

. . . : ! 

i 



i    _         * 



i 
t 

! : 

1 .   , ..| 

1 

1  !i            1    1 

1 

2.62 


THE  COMPLETE  COST-KEEPER. 


TREASURER'S  STATEMENT. 

Tenders  Submitted 

Week  Ending 

"            " 

<i            (1 

Contracts  Received 

Week  Ending 

<i           .1 

.  .1           << 

Orders  Received 

Week  Ending 

.<           It 

11           11 

TREASURER'S  STATEMENT. 

Month  Ending 

Date. 

Accts. 
Receivable. 

Balance  Sheet 

Orders  Billed 

Contracts  Billed 

Accounts  Paid 

Sundry  Credits 

Balance  Sheet 

Shop  Pay  Roll 

Two  Weeks  Ending 

Salaries  Office,  Easton . . . 

"            "        Chicago.. 

• 

New  York 

Card  C. 


THE  COMPLETE  COST-KEEPER. 


263 


Card  "C"  is  the  treasurer's  monthly  statement. 

Card  "D"  shows  the  distribution  of  cash  for  the  month. 

Card  "E''  is  the  treasurer's  daily  report,  made  by  the  trea- 
surer at  the  factory  to  the  manager  in  New  York. 

Card  "F"  shows  the  total  billing  of  the  month  as  compared 
with  the  same  month  of  previous  year. 

Card  "G,"  tenders  submitted  for  the  week.  Reverse  side, 
contracts  received  for  the  week. 

Card  "H,"  orders-received  card,  made  immediately  upon  re- 
ceipt of  order  at  works,  and  sent  to  general  manager. 


Form  41.                     DISTRIBUTION  OF  CASH. 

Month  of 19 . . 

Distribution. 

Received.                        Disbursed. 

To  Balance  on  hand 

1 

i     "  Accounts  Paid 

* '  Cash  Sales 

"  0   Thome  Dep 

' '  Sundries 

1 

-, 

I 

i 

.  •  1  . 

Disbursements. 

I 

Building  and  Lands 

Draujrhting      .         

Experimental 

Factory  Pay  Roll   

Freight      

Fuel           

! 

Hand  Tools  and  Supplies 

Interest  and  Discount 

i 

j 

t 

1 

j 

. 

Oil  and  Waste                    

1 

1 

Amts     Forwarded 

1 

1 

Card  D. 


264 


THE  COMPLETE  COST-KEEPER. 


CONTINUED. 
Month  of 

^                         1 

Distribution. 

Received. 

Disbursed. 

Amts.  Forwarded 

Patents  and  Goodwill 1 

] 

Patterns 

.... 

! 

Petty  Cash  Accts 

Rent 

Trading  Acct 

0.  Thorne  Dept 

....    j 

1 

....    j 



1 

. 

Balances. 

Bank  of  America 

Northampton  Co.  Bank • 

Petty  Cash  Treas i 

"I 

... 

1 

This  "orders-received"  card,  H,  clearly  sets  forth  the  name 
of  the  purchaser  together  with  the  order-number  as  received,  and 
the  shop  order  together  with  the  items  ordered,  and  is  also  used 
to  indicate  when  the  bill  is  rendered,  statement  sent,  and  account 
settled.  With  these  cards  "H"  filed  in  chronological  order  in  the 
cabinet,  it  is  easy  for  the  general  manager  to  keep  in  close  touch 
with  the  accounts  receivable,  as  the  cards  make  it  unnecessary  for 
him  to  inquire  of  the  secretary  or  of  the  book-keeper  concerning 
any  account.    When  a  bill  is  sent  out  from  the  factory  it  is  accom- 


THE  COMPLETE  COST-KEEPER. 


265 


Date                     TREASURER'S  DAILY  REPORT. 

To  Balance  B'k  of  America. . 

"         "           "    Northampton 
Deposits 



By  Vouchers  issued  No.  to  No. 
'♦  Balance  B'k  of  America. . 

••         "           "    Northampton 

Card  E. 

panied  by  a  short  letter  of  explanation,  setting  forth  the  total 
amount  of  the  bill  and  the  order-number.  A  carbon  copy  of  this 
letter  is  forwarded  at  the  same  time  to  the  general  manager,  whose 
clerk  transfers  the  information  contained  thereon  to  the  "orders- 
received  card,"  the  general  manager  having  the  treasurer's  daily 
report  which  shows  in  itemized  form  the  amounts  received  and 
from  whom,  each  day,  which  determines  the  exact  time  each  ac- 
count is  paid,  and  it  is  so  indicated  on  the  "orders-received  card.*' 
As  the  order  cards  show  that  a  bill  is  paid,  the  card  is  taken  from 


BILLING  MONTH  OF  

N 

Same  Munth 
last  Year. 

Mechanical 

Electrical 

Bushnell 

Miscellaneous 

. 

1 

j 

Card  F. 


266  THE  COMPLETE  COST-KEEPER. 


CONTRACTS  RECEIVED  WEEK  ENDING 

TENDERS  SUBMITTED  WEEK  ENDING 

'         *  ' 



Card  G. 


THE  COMPLETE  COST-KEEPER.  267 


I 

s 

ORDER  RECEIVED  CARD. 

Name  Railroad 

Order  No Date 

Stop  Order  No 

Articles 

1 

1 

Bills  Rendered 

•   •  • ' >', 

.1 

1 

Statement  Sent 

1 

Paid 



Card  H. 

the  front  and  placed  in  the  back  of  the  index,  the  object  being  ta 
keep  all  order-cards  accessible  in  case  inquiries  are  made  during 
the  year  concerning  the  order.  After  that  time  they  are  taken  out 
and  filed  away.  In  connection  with  this  card-filing  cabinet,  the  presi- 
dent of  the  company  receives  a  duplicate  card  at  his  residence,  and 
files  it  in  his  duplicate  cabinet.  This  gives  him  full  details  each 
morning  regarding  all  matters  of  importance. 

A  daily  statement  of  condition  of  orders  in  work  is  trans- 
mitted from  the  factory  to  the  general  manager.  This  is  a  state- 
ment in  regard  to  ever}-  order  in  process  of  production  in  the 
works,  showing  particularly  the  thing  required  to  be  done  or  mate- 
rial furnished  to  complete  the  order;  also  showing  comparison 
between  the  stores-ledger  and  actual  account  of  some  particular 
item.  This  is  done  to  keep  close  check  on  the  work  of  the  stores, 
also  to  show  the  number  of  men  employed  in  each  department 
every  day. 


268  THE  COMPLETE  COST-KEEPER. 


Card-Filing  Cabinet,  Hansel's  simultaneous  locking  of  all  four  drawers. 


THE  COMPLETE  COST-KEEPER. 


269 


MACHINES  SHIPPED. 

WrktitVi  e\f 

1 

Date. 

Location.                      }                   R.  R. 

No.  .  Levers. 

Spare. 



) 

i' 

Card  I. 


Card  "I"  is  a  statement  of  machines  shipped  for  the  month. 

Card  "]"  shows  estimated  cost,  proposed  actual  cost,  results, 
and  history  of  each  contract. 

Card  "K,"  is  an  address  memorandum,  showing  the  official 
title  of  the  person,  and  memorandum  of  all  catalogues,  pamphlets^ 
etc.,  sent  to  him  and  the  date  sent.  It  often  happens  that  requests 
for  the  forwarding  of  printed  matter  are  made  by  those  who 
already  have  in  their  possession  the  matter  requested.  A  refer- 
ence to  card  "K"  shows  at  once  what  printed  matter  may  be  sup- 
posed to  be  in  possession  of  the  person  named. 

Card  "L"  is  called  the  reference  card,  and  upon  this  blank 
notations  are  made  of  any  matter  connected  with  the  business. 

Card  "M"  is  a  blank  card  upon  which  is  made  any  memoran- 
dum especially  relating  to  callers,  setting  forth  any  important  con- 


270 


THE  COMPLETE  COST-KEEPER. 


NAME  OF  FOREMAN. 

No. 

Material 

Date. 

Remarks 

Levers           

Material  Shipned 

Switches  Single  .... 

"      Rec 
Work  comm 

•.^ 

"    Slip     "       

ftn'd 

"      "     Double 

"       completed 

"      "     M.  P.  F 

accept 

ed 

Derails   

Signals  Home  One  Arm  P.  or  W 
"      Two     " 
"        Distant 

Terms. 

"        Dwarf 

"        Automatic 

"        Manual  Cont 

"        S.  Protection 

1                              1 

Card  J. — This  card  is  a  summary  of  the  complete  history  of  each  contract,  as  will  clearly 
appear  upon  examination  of  the  headings.  Its  value  is  not  only  historical,  for  it  forms  an 
accurate  oasis  for  future  proposals. 


Proposal  to                                                                              Plan  No. 
RAILROAD  AT 

Description. 

Estimated 
Cost. 

Proposal. 

Actual 
Cost. 

Results.                1 

Profit. 

Loss.   •     1 

Material  Mechanical . . 

"         Electrical. . . . 

Labor  Mechanical .... 

"        Electrical 

Freight 

R    K    Fare     



Material  Tower. 

'Pnwfir  Rrf^rtefl 

Totals 

1 

Card  J. 


THE  COMPLETE  COST-KEEPER.  271 


Name 

Title 

Called Concerning 

Business 

Sent  Catalog  No 

"     Circular  No > 

"     Pamphlet  No 

"     Sample 


CardK. 

versation  which  may  have  occurred,  giving  date  of  the  call,  with 
full  name  of  the  individual. 

These  cards  are  filed  in  ordinary  filing-cabinets,  the  same  as 
those  used  in  public  libraries.  The  particular  cabinet  shown  is 
made  by  ourselves,  copied  from  the  "Library  of  Bureau"  cabinet. 

Card  "O"  is  the  previously-given  description  of  forms  to  be 
used  by  the  company.  In  order  that  no  misunderstanding  might 
arise,  involving  discussion  as  to  what  was  intended  by  each  form, 
the  author  prepared  a  description  of  each,  showing  exactly  how  it 
is  to  be  handled  in  the  work.  By  this  means  it  is  possible  to  make 
any  change  in  the  clerical  force  without  embarrassment  in  carry- 


REFERENCE  CARD. 
Subject 


CardL. 


2y2. 


THE  COMPLETE  COST-KEEPER. 


ing  out  the  system,  for  in  case  a  clerk  is  in  doubt  as  to  the  exact 
use  of  any  form  he  has  but  to  refer  to  this  description  for  full 
information.  This  description  also  has  with  it  a  glossary  of  terms, 
so  that  the  terms  used  may  be  readily  understood. 

Card  "P/'  key  to  distribution  of  vouchers.  The  purpose  of 
this  key  is  to  permit  any  subdivisions  of  the  general  expense  ac- 
count which  may  be  desired,  at  the  same  time  keeping  the  sub- 
divisions private.  There  are  but  three  copies  of  this  key;  these 
are  placed  in  the  hands  of  the  president,  general  manager,  and 
secretary.  This  key  is  made  expansive,  and  at  present  covers  the 
numbers  from  i  to  232 ;  it  shows  in  right-hand  column  the  num- 
ber of  the  page  of  the  ledger,  and  when  the  ledger  page  is 
changed,  or  a  new  subdivision  is  decided  upon,  the  key  is  cor- 
rected. 


CardM. 


Catalogues. 


The  catalogue  is  arranged  on  the  system  of  decimal  classifi- 
cation, which  is  a  modification  of  the  well-known  decimal  system 
of  library  cataloguing,  whole  numbers  designating  the  class  to 
which  an  article  belongs  and  decimal  fractions  designating  each 
individual  part  n  regular  sequence  from  .01  to  .99  and  so  on  with- 
out limit.  The  catalogue,  being  in  numerical  sequence,  is  self- 
indexing,  so  that  any  piece,  as  soon  as  the  number  is  known,  can 
be  located  at  once,  and  its  illustration  and  proper  designation  im- 


THE  COMPLETE  COST-KEEPER. 


273 


THE  NATIONAL  SWITCH  AND  SIGNAL  CO. 

Class  3.     Signals  and  Fittings. 

• 

Section  30.     Standard  Signal  Fittings. 

Plate  32. 

Order  No. 

Blade  grip  for  square  shaft. 

*30.0I 

*30.02 

Ring  only,  for  blade  g^rip. 

3003 

Red  glass      "      "        " 

30.04 

Green    "       "       " 

*30.05 

Back  light  spectacle. 

*30.o6 

Ring  for  back  light  spectacle. 

30.07 

Blue  glass  for  back  light  spectacle. 

♦30.08 

Semaphore  shaft. 

•30.09 

"              "      bearing. 

♦30.10 

Lamp  bracket. 

30.11 

Standard  lamp. 

♦30.12 

Up  and  down  rod  for  i-arm  pole. 

30.13 

It     ..         •«        «•     .<    2-arm    " 

30.14 

i«     X         •<        41     <<    ^.arm    '• 

♦30.15 

i-way  balance  lever  stand. 

♦30.16 

2-way        "          "         " 

♦30.17 

3-way        "          *•        " 

♦30.18 

Balance  lever. 

♦30.19 

T  Crank  balance  lever. 

♦30.20 

2olb.  cotmterweight. 

30.21 

4olb.              " 

Sample  Page  from  Reference'"  Catalogue  " 


274 


THE  COMPLETE  COST-KEEPER. 


30.01 


30.05 


30.03 
30.09 


30.25 


30.15 


o  o 


I  @  I 


30.19 


30.16 


m 


30.17 


G 


•     (o)  °) 


30.22 


:t    1: 


H 


Sample  page  from  Reference  "Catalogue."     Standard  Signal  Fittings. 


THE  COMPLETE  COST-KEEPER. 


275 


CLASS  3-     SIGNALS  AND  FITTINGS. 
Section  30.     Standard  Signal   Fittings. 


Catalog 

No. 


Z30.OII 


X30-05 


X30.08 


Z30.13 


X30.13 


X30.14 


Assembling 
Combination. 


s 


r    r 


>1 


Des- 
cription 
No. 


30.01 

454 

W-16 

C-23 

30.02 

B-2 

B-39 


30.05 
30.06 
B.I 


30.08 
W-12 
N-15 
C-22 


30.121 
N-18 
30  41 
307  . 
C-21 


30.131 

N-18 

30.41 

307 

C-21 


30.141 

N-18 

30.4'' 

307 

C-21 


Descriptton. 


Blade  Grip 

%  X  3\i"  stud 

J^-"  special  washer 

^  X  1%'^  cotter 

Ring 

W  X  i''  sq.  head  bolt  &  nuts 

^  X  i}4^^  car'ge  bolts  &  nuts 


Black  Spectacle 

Ring 

%^  X  ^'"sq.  head  bolts  &  nuts 


ij^  X  15^  Shaft 
%/'  punched  washers 
\''  hex.  nuts 
A  ^  '^W  cotter 


6'  <)%''  Up-and-Dow.n-Rod 
11''''  hex.  nut 
^"  screw  jaw 
%  X  \%"  pin 
^  X  I''''  cotters 


13'  ^y^"  Up-and-Dgwn-Rod 
}\"  hex.  nut 
%f'  screw  jaw 
%  X  \y^''  pin 
1^  X  V  cotter 


28// 


\%'^  Up-andDown  Rod 

hex.  nut 
54     screw  jaw 
%Ti\y^"  pin 
j\  X  \"  cotter 


I    i 


Sample  Page  from  Assembling  •'  Catalogue." 


276  THE  COMPLETE  COST-KEEPER. 

mediately  found  in  the  pages  of  the  catalogue.  The  catalogue 
number  is  cast  on  all  castings.  In  case  of  additions  of  pieces 
not  specified  in  the  catalogue,  or  of  new  designs  under  the  generic 
number,  catalogue  additions  are  made  by  the  extension  of  the 
decimal  notation.  These  additions  are  kept  and  recorded  on  a 
private  catalogue  in  the  manager's  office,  and  are  added  to  the 
commercial  catalogue  as  fast  as  new  editions  thereof  are  made. 

The  catalogue  illustrations  are  made  in  blue  and  white 
in  imitation  of  a  blue  print.  This  effect  is  produced  by  an  etched 
zinc-block  which  is  very  inexpensive  in  production,  making  illus- 
trations cost  far  less  than  if  line-engravings  or  half-tone  repro- 
ductions were  used. 

We  have  prepared  an  assembling  catalogue,  which  is  sent 
only  to  customers  holding  annual  contracts.  The  purpose  of 
the  assembling  catalogues  is  to  group  the  several  parts  of  any 
device  under  a  single  catalogue  number,  included  under  the  sec- 
tion number.  As  an  example  of  this  assembling  catalogue  in  con- 
nection with  the  reference  catalogue  illustrated  hereinbefore,  a 
reproduction  of  page  67  is  given.  It  will  be  noted  that  by  pre- 
fixing "x"  to  the  catalogue  number  30.01 1,  the  seven  articles  are  in- 
cluded which  are  used  to  make  up  the  entire  structure  designated 
by  30.011,  and  in  ordering  the  complete  article,  it  is  only  neces- 
sary to  indicate  it  by  prefixing  "x"  to  30.011.  This  assembling 
catalogue  is  used  in  the  works  to  place  shop-orders,  and  to  trans- 
late orders  received  into  shop-orders,  and  insures  against  the  lia- 
bility of  overlooking  some  parts,  which,  while  not  individually 
indicated  on  the  order  received  should  be  each  separately  specified 
in  the  shop-order. 

The  Pattern  Storage-Room  is  classified  to  correspond  with 
the  assembling  catalogue  in  class  and  section,  each  class  being 
expansive  under  the  decimal  system,  and  the  compartments  of 
the  bins  are  numbered  under  the  decimal  system  to  correspond 
exactly  with  the  catalogue. 

An  inventory  is  made  once  a  year  from  actual  count  and  sur- 
vey. A  quarterly  inventory  is  made  from  the  stores-ledger  and  on 
this  quarterly  statements  are  made  up.  Results  for  the  last  year 
show  that  in  comparing  the  inventory  made  from  the  stores- 
ledger  with  the  inventory  from  actual  count  and  survey,  the 
stores-ledger  showed  one  and  a  half  per  cent,  less  stores,  in  value, 


THE  COMPLETE  COST-KEEPER.  277 

than  the  actual  count  and  survey  showed.  In  this  system,  the 
stores-ledger  should  always  show  a  percentage  below  actual 
amounts,  for  the  reason  that  stores  are  considered  as  either  in 
the  rough  or  completely  finished,  and  when  the  inventory  from 
actual  count  and  survey  is  made,  partly  finished  goods  are  enume- 
rated which  are  in  the  shop,  and  outside  of  any  stores.  For 
instance,  the  stores  issues  from  the  rough  goods  one  hundred 
forgings  for  handles.  These  are  put  through  the  works,  and  not 
returned  to  any  stores  until  all  are  finished.  If  an  inventory  from 
actual  count  and  survey  is  made,  it  may  be  found  that  fifty  per 
cent,  or  more  of  these  forgings  are  completed,  and  of  course  they 
are  so  counted.  Hence  the  variation  between  the  book  inventory 
and  the  actual  count. 


Instructions  to  Foremen. 


Managers  are  well  aware  of  the  troubles  and  delays  caused 
by  a  lack  of  full  understanding  of  the  work  to  be  performed,  and 
also  frequently  by  lack  of  proper  provision  in  the  way  of  portable 
tools  and  appliances  to  be  used  in  the  course  of  erecting  the  work. 
It  also  happens  in  some  cases  that  a  sufficient  number  of  parts  is 
not  sent  out.  All  these  mistakes,  errors,  and  oversights  cause 
delay  and  expense,  and  are  extremely  vexatious. 

To  improve  the  installation  practice  so  far  as  possible,  the 
company  has  prepared  a  little  book,  4^  inches  wide  x  6J  inches 
high,  containing  forty-eight  pages,  paged  at  the  bottom,  and 
printed  on  the  right-hand  page  only,  the  left-hand  pages  being 
blank  up  to  the  thirty-fifth  page,  and  all  the  pages  from  the  thirty- 
sixth  to  the  forty-seventh  blank ;  and  bound  in  thin  flexible  cloth 
covers. 

This  book  is,-  of  course,  prepared  with  particular  reference 
to  the  installation  of  the  switch  and  signal  plant.  In  its  general 
form,  aim,  and  scope,  however,  it  gives  suggestions  to  the  mana- 
ger of  any  business,  in  which  installation  of  product  forms  an 
important  part,  as  to  what  may  be  done  in  the  way  of  facilitating 
and  expediting  installation  proceedings  by  means  of  a  carefully 
prepared  form  of  instructions  to  the  foremen  of  erection  gangs. 

The  full  text  of  this  book  is  here  reproduced  page  by  page, 
there  being  sometimes  two,  sometimes  three,  and  sometimes  four, 
different  particularizations  on  each  page.     Blank  spaces  are  left 


278  THE  COMPLETE  COST-KEEPER. 

under  each  particularization  for  additional  written  instructions 
which  may  be  needed  in  particular  cases.  The  blank  pages  at  the 
back  of  the  book  afford  a  large  additional  space  in  which  lengthy- 
special  instructions  may  be  fully  noted,  when  needed. 

Pages  three  to  fourteen  of  the  book  tell  the  foreman  what 
he  should  be  supplied  with  before  he  commences  the  installation 
of  a  plant,  and  pages  fifteen  to  thirty-five  inform  him  regarding 
his  own  personal  duties  and  responsibilities  in  connection  with  the 
work  which  he  undertakes  to  perform. 

The  use  of  this  instruction  book  has  proved  of  great  value  in 
installation  work ;  and  it  seems  probable  that  something  of  a  simi- 
lar nature  would  be  found  highly  advantageous  to  any  concern 
employing  installation  gangs. 

In  many  cases  something  of  less  length  might  prove  suffi- 
cient, but  it  must  be  borne  in  mind  that  it  is  fullness  and  com- 
pleteness which  give  value  to  a  factory  form,  and  that,  in  a  form 
which  is  to  serve  the  purpose  of  entire  and  final  instructions  in  so 
important  a  matter  as  installation  or  erection,  it  is  far  better  to 
exceed  what  might  possibly  be  the  narrowest  useful  limits,  than' 
to  fail  -to  include  any  needed  particular. 

Each  foreman's  instruction  book  is  returned  to  the  superin- 
tendent, from  whom  he  received  it,  upon  completion  of  the  in- 
stallation. The  book  is  then  filed  as  a  part  of  the  records  of  that 
installation.  If  special  instructions  are  sent  to  the  foreman  while 
he  is  on  the  work,  he  is  required  to  incorporate  them  in  the  book, 
either  by  transcription  or  interleaving. 


INSTRUCTIONS  TO  FOREMEN. 
(  Page  3.) 
Information  to  be  Furnished  Foreman. 
I 
Plans  of  Tracks.         A  complete  p^an  of  tracks  showing  all  switches  and 
signals  to  be  operated  and  line  of  connections  to  be 
run ;    location  of  tower,  line  of   right  of  way,  streets, 
etc.;    location   of    all   detector  bars,  switch  and   lock 
movements,  facing  point  locks,  derails,  bolt  locks,  and 
Scotch  blocks.      This  plan  will  be  accompanied  by  a 
locking  and  dog  sheet  showing  the  arrangement  of  all 
locking. 


THE  COMPLETE  COST-KEEPER.  279 

2 

Tower  Plan.  A  plan  of  tower  showing  front  and  side  view  with 

sectional  elevation,  leadout  foundation,  and  all  dimen- 
sions of  members  marked  thereon.  This  plan  will  be 
accompanied  by  a  complete  bill  of  material. 

(Page  5.) 

3 
Estimate  Sheet.  A  copy  of  the  estimate  sheet  showing  the  quantity 

of  material  estimated  in  each  class. 

4 
Switch  and  Lock         Plans  showing  the  manner  of  connecting  switches 
Connections.         by  switch  and  lock  movements  or  facing  point  locks, 
double  slip  switches,  with  movable  frogs,  will  be  fur- 
nished when  same  are  shown  on  plan. 

5 
Clearance  Dia-  Clearance  diagjram  will  be  furnished  showing  rela- 

GRAM.  tion  of  all  structures  to  track. 

(  Page  7.) 
6 
Signals  and  Fit-         A  plan  of  bracket  pole  showing  method  of  assem- 
TiNGs.  bling  and  construction. 

7 
Machine  Frame.  A  detail  plan  of  machine  frame. 

8 
Compensator  Where  work  is  complicated,  a  complete  list  of  com- 

AND  Work  List,     pensators  and  bell  cranks,  showing  where  same  are  to 
be  used,  will  be  furnished. 

(Page  9.) 

9 
Detector  Bar  A  table  showing  the  dimensions  of  detector  bar 

Links.  links  necessary  for  the  various  sections  of  rail. 

10 
Tools.  A  complete  kit  of  tools  in  good  order. 

II 
Small  Supplies.  A  chest  containing  general  small  supplies,  such  as 

pins,  studs,  cotters,  glass,  etc. 

(Page  II.) 
12 
Specifications.  Specifications  showing  the  requirements  of  the  rail- 

road company  or  companies  which  are  to  govern  the 
installation. 

13 
Permits.  All  permits  necessary  for  building,  digging,  etc. 


28o 


THE  COMPLETE  COST-KEEPER, 


Stationery. 


Shipping  Lists. 


Material  to  be 
Purchased. 

Material  to  be 
Furnished  by 
Railroad. 


Special 
Instructions. 


Foreman's 
Address. 


Report  to 


14 
A  supply  of  postal  cards  and  foreman's  letter  paper 
for  daily  reports ;  time  books ;  time  sheets ;  blank  re- 
ceipts ;  transfer  blanks ;  envelopes ; 

15 
A  list  of  all  materials  shipped  covering  signal  ma- 
terial, tower,  tools,  etc 

(  Page  13.) 

16 

A  list  of  material  to  be  purchased  by  foreman. 

17 
A  complete  list  of  material  to  be  furnished  by  the 
Railroad  Company,  such  as  cement ;    broken  stone ; 
ties  in  place ;    derails  in  place ;    tower    and  leadout 
foundations  in  place ;  and  such  other  material  which 
said  company  is  to  furnish. 
18 
A  letter  of  special  instructions  will  be  furnished 
the  foreman  at  the  time  he  commences  the  installation 
of  the  plant. 

(Page  15.) 
Instructions  to  Foremen. 
All  foremen  must  comply  with  the  following  rules : 

19 
Upon  arriving  at  the  point  where  work  is  to  be  in- 
stalled, he  must  go  to  the  nearest  telegraph  station  and 
inquire  for  messages,  and  report  full  address  where  tele- 
grams,  express  matter,  freight  and  letters  will  reach 
him  in  the  most  direct  manner. 
(Page  17.) 
20 
Foreman  will  report  to  and  follow  instructions  of 


Compare  Plans  It  is  very  important  that  any  variation  from  the 

AND  Tracks.  plan  of  tracks  fuurnished  foreman,  and  the  existing  ar- 

rangement of  tracks,  should  be  reported  at  once,  and 
foreman  must  go  over  the  work  carefully,  comparing 
each  track,  etc.,  with  the  plan  furnished,  noting  any  dif- 
ferences or  obstacles  which  will  cause  any  change  in 
the  connections.  All  necessary  grading  should  be  noted, 
the  condition  of  ground  observed,  and  a  complete  report 
made  as  soon  as  possible  after  reaching  the  point  where 
work  is  to  be  installed. 


THE  COMPLETE  COST-KEEPER. 


281 


22 
Tower  If  tower  fotfndation  is  to  be  constructed  by  Signal 

Foundation.  Company,  he  mtist  report  any  conditions  which  will  re- 

quire a  plan  different  from  plan  furnished. 

(Page  19.) 

23 
Shortage  of  In  order  that  there  may  be  no  delay  from  shortage 

Material.  of  material  froqi  any  cause,  he  'must  [compare  estimate 

sheet  with  actual  track  arrangement,    and  report  any 
shortage  which  in  his  opin  ion  may  occur. 
24 
Rk-Location  He  must  report  at  once  any  cause  which  may  re- 

OF  Signals.  quire  a  different  location  of  signals  than  shown  on  plan. 

25 

Test  As  there  are  frequently  various  sections  of  rail  used 

Rail  Clips.  in  the  tracks  within  the  limits  of  the  signals,  the  foreman 

must  test  the  rail  clips  and  links  at  once,  and  not  wait 

until  he  has  to  use  them,  when  it  may  be  found  that  they 

do  not  fit. 

(Page  21.) 
26 
Tools.  The  kit  of  tools  sent  are  intended  to  be  sufficient  to 

enable  the  foreman  to  work  to  the  best  advantage,  and  it 
will  be  expected  that  he  report  any  deficiency,  and  make 
clear  his  requirements.  All  tools  are  sent  out  in  good 
order,  and  the  foreman  IS  HELD  STRICTLY  AC- 
COUNTABLE for  same.  He  must  see  that  all  tools  are 
returned  to  their  proper  place  each  day,  and  hold  his 
men  responsible  for  the  return  of  same,  under  penalty 
of  deducting  value  of  same  from  their  wages.  Wnen 
work  is  completed  all  tools  must  be  accounted  for,  and 

returned  to for  repairs. 

Tools  must  not  be  carried  from  one  job  to  another  unless 
so  ordered.  It  is  intended  that  each  foreman  shall  have 
all  the  necessary  tools  and  materials  in  good  condition 
so  that  good  work  can  be  done  with  speed  and  economy. 

27 
Supply  Chest.  Foremen  have  been  delayed  at  times  by  the  need  of 

small  supplies.  To  avoid  this  a  supply  chest  will  be  fur- 
nished which  will  contain  small  fittings,  extra  glass, etc., 
We  have  frequently  found  stray  pins,  bolts,  cotters  and 
washers  left  carelessly  about  the  work.  Foremen  must 
follow  up  their  work  carefully,  and  not  permit  such 
waste  as  it  will  be  noted  and  scored  against  them.  , 


282 


THE  COMPLETE  COST-KEEPER. 


(  Page  23.) 
28 

Specifications.  The  foreman  will  be  furnished  with  specifications 
and  such  extracts  from  contracts  as  will  be  necessary 
to  enable  him  to  carry  out  the  obligations  of  the  Signal 
Company.  In  no  case  is  he  authorized  to  perform  any 
work  or  furnish  any  material  not  set  forth  in  the  esti- 
mate, specifications  or  contract.  The  Railroad  Com- 
pany will  be  represented  b5^  . . .    

and  should  he  order  any  extra  work  performed,  foreman 
must  request  written  order,  and  send  same  to  the  Sig- 
nal Company,  and  in  case  he  is  ordered  to  perform  such 
extra  work,  he  must  keep  accurate  account  of  time  and 
material  employed. 

29 

Permits.  He  will  report  at  once  if  he  has  not  received  the 

necessary  permits,  and  advise  what  additional  authority 
is  required. 

(Page  25.) 
30 

Shipping  Lists.  Foreman  must  check  off    material  with  shipping 

lists,  and  must  not  unload  any  material  without  taking 
account  of  it.  If  for  any  reason  he  has  not  received 
shipping  list,  then  he  must  make  list  of  all  articles  re- 
ceived as  unloaded,  reporting  any  shortage  at  once. 

31 
Foreman  must  get  bill  with  all  purchases,  and  after 
receiving  all  material  specified  in  bill,  must  approve 
same,  and  send  with  his  daily  report.  He  must  report 
purchase  as  soon  as  made,  giving  amount  and  name  of 
firm. 

32 
He  must  make  daily  report  of  number  of  men  em- 
ployed, including  himself,  and  general  progress  of 
work.  Weekly  time  sheets  must  be  sent  in,  showing 
the  full  name,  time  and  rates  of  pay,  together  with  the 
distribution  of  labor  between  tower  work,  interlocking 
and  electrical  work.  He  must  report  rates  of  pay  upon 
commencing  work. 

(Page  27.) 

33 

Traveling  and  No  time  will  be  allowed  for  traveling,  except  for 

Extra  Time.  the  working  hours  of  the  day,  and  no  expense  will  be 

allowed  in  traveling,  except  car  fare.     No  time  must  be 

put  in  except  for  actual  work  performed,  [and  no  time 


Foreman's 
Purchases. 


Daily  Report. 


THE  COMPLETE  COST-KEEPER. 


283 


Stacking  of 
Material. 


Disconnecting 
Switches. 


Obstructions. 


Covering  Holes, 

Street 

Obstructions. 


Clearance 
Diagrams. 


Cotters. 


Locking. 


must  be  given  for  any  m?n  on  account  of  time  lost  by 
reason  of  sickness  or  stormy  weather.  Sunday  work 
must  be  avoided  where  possible.  No  extra  rate  of  pay 
or  time  will  be  allowed  for  labor  performed  on  Sunday 
or  any  legal  holiday.  The  pay-rolls  must  be  signed 
promptly  and  returned.  All  time  for  extra  work  must 
be  shown  on  special  colored  sheet  furnished  for  this 
purpose. 

34 
As  material  is  received,  it  must  be  carefully  stacked 
so  as  to  clear  all  passing  trains  in  accordance  with 
clearance  diagram,  and  be  so  arranged  as  to  be  acces- 
sible, all  material  of  the  same  class  being  stacked  to- 
gether. 

(Page  29.) 

35 
When  it  becomes  necessary  to  disconnect  any  swich 
the  railroad  company  must  be  notified,  in  advance,  and 
the  switch  firmly  spiked  for  high  speedVoute  before  it  is 
disconnected. 

36 

Danger  signals  must  be  displayed  in  accordance  with 

the  rules  of  the  railroad  company  when  there  is  any 

obstruction  placed  on  the  track,  or  if  for  any  reason  track 

is  so  disturbed  as  to  make  it  dangerous  for  trains  to  pass. 

37 
Foremen  must  see  that  all  holes  which  have  been 
dug  and  which  have  not  been  properly  filled  are  covered 
at  night,  and  if  there  are  any  obstructions  at  street  cross- 
ings, a  lamp  must  be  displayed. 

(Page  31.) 

38 

The  clearance  diagram  shows  how  near  any  structure 

may  be  placed  to  rail,  and  in  locating  signals,   stakes, 

foundations,  stacking  material,  etc.,  this  diagram  must 

be  carefully  observed  and  followed. 

39 
The  work  is  not  complete  until  all  necessary  cotters 
are  in  place  properly  opened.     Foreman  must  look  after 
this  work  closely,  and  not  invite  inspection  until   all 
cotters  are  in  place. 

40 

Locking  must  be  tested  as  soon  as  possible,  so  that 
if  any  error  has  been  made  in  combination,  it  may  be 
corrected  before  plant  is  ready  for  service. 


284 


THE  COMPLETE  COST-KEEPER. 


'Testing 
Machine. 


Disposition  of 
Material. 

Plans  to  be 
Returned. 


General. 


(Page  33.) 

41 
As  soon  as  foreman  has  placed  locking  in  machine, 
thoroughly  tested  same,  and  finds  it  complete  and  per- 
fect, he  must  sign  dog  sheet,  and  report  same,  he  may 
retain  dog  sheet  until  work  is  entirely  completed,  when 
it  must  be  returned  with  other  papers. 

42 
As  the  work  nears  completion,  he  must  report  extra 
material  on  hand,  and  ask  for  disposition  of  same. 

43 
Upon  completion  of  the  work,  all  papers,  plans.etc, 
must  be  returned  to  the  Signal  Company. 

(Page  35.) 

44 

Much  delay  is  frequently  occassioned  by  the  railroad 
companies  in  not  performing  their  part  of  the  work. 
Foremen  must  watch  this,  and  report  any  delay  on  the 
part  of  railroads. 

It  is  the  purpose  of  the  Signal  Company  to  furnish  its 
foreman  with  all  plans,  tools,  material,  specifications 
and  assistance  necessary  to  the  installation  of  the  work 
in  the  best  manner  for  the  least  money,  and  if  any  fore- 
man feels  that  he  is  not  properly  equipped  and  has  not 
been  furnished  sufficient  information,  it  is  his  duty  to 
report  same. 

The  work  of  each  foreman  is  carefully  noted,  and  a 
substantial  consideration  will  be  awarded  to  the  foreman 
showing  the  best  results. 

In  conclusion  there  is  this  to  say:  Some  of  the  forms  here 
given  can  be  applied  with  advantage  in  the  accounting  of  any 
manufacturing  business.  Others  are  specially  adapted  to  switch 
and  signal  "making,  and  so  are  not  of  general  use  in  the  form 
shown. 

Every  form'  given,  however,  is  designed  to  meet,  and  does 
meet  and  satisfy,  certain  conditions  of  demand,  which  find  closely 
related  situations  in  all  factories,  and  hence  each  form  here  repro- 
duced, is  calculated  to  assist  the  manager  in  devising  something 
precisely  suited  to  his  own  requirements. 

The  general  lesson  of  the  whole  system  is  that  embodied  in 
the  sentiment  of  the  time-honored  maxim,  "A  place  for  everything, 


THE  COMPLETE  COST-KEEPER, 


285 


Form  138. 

CONSTRUCTION  MEMORANDUM. 

Plan  No At On 

Date 

R.  R.  Officer  in  Charge 


R.  R. 


Information  to  be  Furnished  Foreman. 

Plan  of  Tracks 17  Mat'l  to  be  furnished  by  R.R 

Tower 18  Special  Instructions 

Estimate  Sheet 19  Insurance 

Svritch  and  F.  P,  L.  Connections 

Clearance  Diagram 

Signal  Poles 

Machine  Frame 

8  Compensators  and  Bell  Cranks 

9  Detector  Bar  Link  Table 

10  Tools 

1 1  Supply  Chest 

12  Specifications. 

13  PermitsJ 

14  Stationery 

15  Shipping  Lists 

16  Material  to  be  purchased 


Material  Memorandum. 


!     Ordered  Shipped.     !       Received. 


20  Interlocking 

21  Pipe  

22  Wire 

23  Signal  Poles 

24  Boxing  Lumber. 

25  Other  Boxing 

26  Derails 

27  Paint 

28  Tower 

29  Electrical 


286 


THE  COMPLETE  COST-KEEPER. 


TOWER  MEMORANDUM. 


30  No  of  Levers Style 

31  Foundation  to  be  built  by 

32  Plans  for  R.  R.  Co For  Insurance 


Size. 


33  Painting 


Items. 


34  Stone  

35  Sand 

36  Cement 

37  Anchor  Bolts. 

38  Lumber 

39  Millwork 

40  Hardware 

41  Nails 

42  Paper 


Quantity 


Remarks. 


Items, 


43  Glass. 

44  Paint . 

45  Stove., 

46  Tools. 


Quant    ty 


Remarks. 


TO  BE  FURNISHED  BY  RAILROAD  COMPANY. 

47  Detail  Specifications 60  Boxing  Lumber 

48  Rail  Sections 61  Boxing  throtgh  Streets. . 

49  Approval  of  R.  R. Commission .  62  Passes 

50  Grading 63  Permits 

51  Tower 64  Clearance  Diagram 

52  Tower  foundation  including  leadout  timber  in  place 

53  Ties  in  place 65  Line  Wiring 

54  Derails  in  place 

5  5  Cement 

56  Sand 

57  Stone 

58  Signal  Poles 

59  Foundations  and  Stakes 

66  Name  of  Foreman 

Address 

67  Spare  Material,     Disposition  of 

68  Tools,  Disposition  of 

69  Tracks  ready Tower  ready 

70  Man  to  leave  in  charge  of  repairs 

71  Order  received Work  Started Put  in  use. . 

72  Completed 


Form  138.  Construction  Memorandum.  This  form  may  be  described  as  a  factory  synop- 
sis of  the  constitution  and  progrress  of  each  installation  order.  It  is  kept  at  the  factory,  and  is 
filled  jjradually,  forming  a  memorandum  of  what  is  to  be  done  and  a  current  record  of  what 
has  been  done.  This  form  has  shown  itself  to  be  a  great  convenience,  and  a  great  time-aaver 
also.    Size  8^  ins.  wide  z  II  ins  high.    Stiff  paper. 


THE  COMPLETE  COST-KEEPER. 


287 


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THE  COMPLETE  COST-KEEPER. 


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THE  COMPLETE  COST-KEEPER. 


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and  everything-  in  its 
place."  First  of  all, 
the  place  for  the  thing 
must  be  provided,  and 
and  the  place  must  fit 
the  thing.  After  a 
suitable  place  is  pro- 
vided it  becomes  a 
mere  matter  of  daily- 
routine,  requiring  no 
thought  and  little  skill 
to  fill  the  places  with 
the  things  which  fit 
them  and  belong  in 
them,  and  this  is  the 
sum  and  substance  of 
factory  accounting. 
Every  day  brings  its 
expenditures,  its  char- 
ges and  credits.  If 
these  can  be  recorded 
where  they  should  be 
recorded,  then  the  fac- 
tory accounting  is  per- 
formed. 

The  shortest  and 
least  laborious  meth- 
od of  making  account- 
ing entries  is  by  the 
use  of  printed  forms 
which  demand  the 
least  possible  pen 
work,  and  at  the  same 
time  prevent  any  de- 
tail being  forgotten  or 
overlooked.  Hence, 
there  must  be  a  spec- 
ial form  to  receive 
each   special  division 


THE  COMPLETE  COST-KEEPER.  291 

of  the  accounting.  The  cardinal  point  is  to  have  fonns  enough, 
and  so  avoid  all  hesitation  in  placing  items  and  all  those  uncertain- 
ties as  to  detail  of  expenses  which  arise  from  mixed,  combined, 
aggregated  charges  or  credits.  Everything  must  be  reduced  to  its 
elementary  forms  if  its  exact  constitution  is  to  be  known.  When 
all  the  elements  of  the  accounts  of  a  factory  are  separated  and 
recorded  it  then  becomes  easy  to  aggregate  the  items  in  such  a 
manner  as  to  give  exact  information  in  regard  to  any  detail  of  the 
business,  and  this  may  be  said  to  be  the  final  ending,  the  sum  and 
substance  of  factory  accounting. 


FACTORY  ORGANIZATION  AND  ACCOUNTING. 


By  James  Newton  Gunn. 

The  first  and  most  essential  requirement  of  any  system  of 
factory  accounting,  is  assured  accuracy  of  initial  records  and  re- 
ports of  actual  performance. 

Any  results  that  may  afterwards  be  obtained  by  analysis  of 
factory  records  are  valuable  precisely  in  proportion  to  the  care 
used  in  determining  what  facts  shall  be  recorded,  and  in  obtain- 
ing the  fact-records  according  to  that  determination. 

The  superior  economy  of  one  of  various  systems  of  factory 
accounting  depends  upon  the  selection  of  such  means  of  record  as 
will  actually  gather  an  accurate  current  record  of  work,  with  the 
aid  of  such  intelligences  as  are  available,  with  the  most  certainty 
and  least  expense. 

The  facts  requiring  the  most  detail  so  far  as  a  system  of  fac- 
tory organization  is  concerned,  are  those  relating  to  material  and 
productive  labor ;  but  there  are  other  facts  of  a  less  obvious  de- 
scription, such  as  the  variation  in  the  weights  of  castings  from 
their  theoretical  or  prescribed  weight,  the  breakage  of  minor  tools 
and  dies,  facts  concerning  the  amount  of  ashes  burned  out  from  a 
certain  amount  of  coal  consumed,  and  so  on  through  a  long  cata- 
logue of  items,  which,  however  interesting  and  valuable  if  the 
system  is  sufficiently  perfect,  are  difficult  to  secure  by  the  average 
manufacturer  who  wishes  to  organize  a  practically  accurate  sys- 
tem which  shall  give  him  current  knowledge  of  the  obstacles  in 
his  course,  and  inform  him  as  to  the  true  factors  of  his  direct  and 
his  indirect  expense,  give  the  variations  in  his  indirect  expense, 
and  facilitate  the  analysis  of  this  indirect  expense  with  a  view  to 
its  reduction,  or  to  its  being  made  less  unprofitable. 

In  collecting  the  initial  facts  concerning  either  labor  or  mate- 
rial, it  must  first  be  determined  whether  it  is  practicable  to  have 
the  men  employed  in  performing  the  work  fill  the  record  cards,  or 
whether  it  is  more  profitable  to  have  them  filled  by  the  foreman, 
or  assistant  foreman,  or  clerks  specially  employed  for  the  purpose. 
For  instance,  in  a  steel-mill  the  nature  of  the  work  precludes  the 


THE  COMPLETE  COST-KEEPER.  293 

possibility  of  men  working  upon  a  train  of  rolls  recording  their 
own  performance  beyond  the  bare  fact  that  they  worked  a  certain 
number  of  hours  on  another  train  of  rolls,  while  in  a  machine- 
shop,  where  a  man  is  working  on,  say  a  planer,  he  has  sufficient 
time  on  his  hands  not  only  to  record  his  time  in  detail,  but,  if  it 
were  necessary,  to  make  side  elevations  and  sections  of  the  pieces 
on  which  he  works.  And  again,  a  man  engaged  in  laying  out 
the  stock  in  a  cabinet  factory  doing  special  work,  if  he  were  in- 
structed to  record  the  time  taken  for  that  operation  would  prob- 
ably spend  as  much  time  in  making  the  record,  as  he  would  in 
selecting  the  stock  for  any  given  order  of  work.  Hence  the  first 
and  most  important  consideration  is  the  physical  system  which 
shall  be  adopted  for  recording  the  fundamental  facts  concerning 
labor  and  material  disbursed. 

The  first  consideration  is  to  see  that  the  plant  is  properly 
divided  as  to  its  various  departments ;  that  is  to  say,  that  eacli 
foreman  has  as  many  men  as  he  can  profitably  handle  and  no  more, 
that  no  one  foreman  has  charge  of  two  or  more  classes  of  work 
which  are  in  no  way  related,  and  that  the  disposition  of  the  work 
in  the  building  is  not  such  as  to  preclude  the  possibility  of  the 
foreman  in  charge  giving  to  the  work  the  best  supervision  ant} 
direction  possible. 

Having  determined  so  much,  the  next  step  is  to  obtain  a  com- 
plete statement  of  all  the  operations  performed  throughout  the 
establishment. 

These  are  then  divided  into  two  main  classes.  First,  opera- 
tions which  are  performed  so  directly  upon  the  work  that  it  is 
possible  to  charge  the  labor  and  material  expended  to  a  given  pro- 
duction-order, and  Second,  those  operations  which  are  so  general 
in  their  character  as  to  be  necessarily  treated  as  indirect  expense, 
together  with  the  cost  of  operations  which  are  of  the  nature  of 
expenses  incidental  to  the  operation  and  maintenance  of  the  plant, 
rather  than  to  any  particular  class  of  work. 

In  the  particular  plant,  which  is  the  example  selected  for  pre- 
sentation here,  the  work  is  of  such  a  character  and  the  perform- 
ances are  of  such  duration,  that  in  the  majority  of  cases  the  direct 
operations  are  charje-eable  to  specific  production-orders,  and  in 
every  case  it  is  possible  for  the  workmen  to  record  their  own 
time  and  performances.     Where  one  workman  performs  several 


294  THE  COMPLETE  COST-KEEPER. 

minor  operations  on  a  single  production-order,  these  operations 
are  recorded  on  his  time-card,  but  he  is  not  required  to  individual- 
ize the  actual  time  spent  on  each  of  the  minor  operations.  The 
rule  which  governs  in  determining  whether  he  shall  indicate  the 
time  down  to  the  least  operation,  or  record  the  time  on  a  group  of 
operations,  is  that  the  time  shall  be  separately  recorded  for  all 
operations  which  could  not  be  performed  under  one  contract  if 
the  work  were  on  a  piece-work  basis.  It  may  be  noted  here  that 
prior  to  the  installation  of  the  system  taken  as  an  example,  no 
piece-work  was  performed  in  the  factory.  Under  the  system 
adopted  the  indirect  operations  are  classified  wholly  by  the  results 
which  are  obtained ;  thus  sweeping  belongs  to  the  group  of  opera- 
tions incidental  to  the  care  of  the  plant,  while  oiling  of  shafts  and 
care  of  belting,  pertains  to  the  production  and  use  of  power.  For 
all  these  indirect  operations  fixed  or  standing  order-numbers  are 
provided,  and  all  the  indirect  work  performed  is  charged  to  one 
or  another  of  these  standing  order-numbers,  unless  a  specific  pro- 
duction or  plant-order  has  previously  been  given  therefor. 

In  order  to  reduce  the  mechanical  effort  in  the  making  of  the 
time-card,  specially  devised  time-cards  are  prepared  for  each  de- 
partment, the  margin  of  the  time-card  containing  the  principal 
operations  performed  in  that  department,  so  that  the  record  to 
be  made  on  the  card  consists  of  the  date,  the  workman's  number, 
the  workman's  name,  quantity  and  description  of  the  work  in 
hand,  a  check-mark  or  cross  opposite  the  operation  performed  by 
the  workman,  a  check-mark  indicating  the  time  the  work  was 
commenced,  and  another  showing  the  time  the  work  was  finished. 
The  record  of  the  work  performed  as  indicated  on  these  time- 
cards  is  checked  at  the  end  of  each  day  by  the  foreman  or  sub- 
foreman  in  charge,  and  the  cards  are  then  immediately  transferred 
io  the  office  of  the  paymaster. 

The  same  methods  are  used  in  securing  the  original  records 
of  material  disbursed  in  producing  an  order.  The  series  of  forms 
shown  herewith,  which  are  termed  Material  Cards,  together  with 
the  schedules  of  machine  details  shown,  serve  to  record  the  entire 
history  of  all  material  from  the  time  it  enters  the  factory  until  it 
becomes  finished  product,  and  has  all  of  its  costs  properly  recorded 
upon  the  cost-cards.  These  material  cards  are  differentiated  in 
color  to  unmistakably  indicate  to  the  workmen  and  clerks  the  dif- 


UNIVERSITY 
^£CALIFORHi> 

THE  COMPLETE  COST-KEEPER.  295 

ferent  classes  of  records.  Thus  a  white  material-received  card 
is  used  for  recording  all  material  when  it  enters  the  factory,  no 
matter  whether  this  is  raw  material  or  parts  purchased  ready  to 
assemble  into  a  complete  machine.  A  buff  material-delivered  card, 
shows  that  material  has  been  transferred  from  one  of  the  store- 
rooms to  some  department,  or  from  one  department  to  another. 
A  salmon-colored  materials-returned  card  shows  that  material  is 
to  be  credited  to  the  order-number  or  account  which  appears 
thereon,  as  the  material  is  returned,  either  from  a  department 
to  the  storeroom,  or  from  one  department  to  another  department 
from  which  it  may  have  been  received.  A  blue  material-requisi- 
tion card  indicates  a  requisition  made  by  a  foreman  or  a  store- 
keeper for  purchase  of  material  by  the  purchasing  department. 

The  schedule  of  machine  details  records  those  parts  of  any 
one  completed  unit  of  factory  product  which  are  carried  in  stock 
in  the  storeroom  ready  for  use  by  the  assembling  department, 
each  schedule  being  individually  numbered,  and  a  single  schedule 
representing  all  the  parts  necessary  to  complete  a  machine  of  a 
certain  size  and  type.  Duplicates  of  each  of  these  schedules  are 
in  possession  of  each  of  the  following  officials :  Superintendent, 
cost-clerk,  stores-ledger  clerk,  storekeeper,  and  foreman  of  as- 
sembling department.  These  schedules  enable  the  foreman  of, 
for  instance,  the  assembling  department,  to  use  a  single  materials- 
delivered  card  calling  for  all  parts  on,  say,  schedule  number  seven- 
teen, which  he  sends  to  the  storekeeper,  thus  saving  the  writing 
and  possible  errors  which  would  be  incidental  to  the  reproduction 
in  detail  of  the  individual  items  covered  by  the  entire  schedule 
every  time  a  machine  was  to  be  assembled  or  two  or  more  were 
to  be  assembled.  These  material-cards  always  bear  either  the  pro- 
duction-order number,  or  plant-order  number  to  which  they  are 
related,  or  if  the  material  is  solely  chargeable  to  expense,  must 
bear  the  standing-order  number  which  indicates  the  division  of 
the  expense  account  for  which  they  are  disbursed.  It  may  be 
said  here  that  one  of  the  most  important  precedents  to  accurate 
factory  accounting,  is  absolute  uniformity  of  nomenclature 
throughout  the  factory.  Any  variation  in  naming  leads  to  doubt, 
and  opens  the  way  to  inaccurate  returns. 

The  general  organization  of  the  particular  plant  under  de- 
scription is  as  follows: 


296  THE  COMPLETE  COST-KEEPER. 

The  chief  of  the  entire  office  and  factory  staff  is  the  Presi- 
dent and  Treasurer,  who  is  Acting  General  Manager^  and  is  re- 
sponsible only  to  the  Directors  of  the  Company.  The  next  in 
authority  is  the  General  Factory  Manager,  who  bears  the  entire 
responsibility  of  production,  and  who  is  subordinate  to  the  Presi- 
dent alone.  The  General  Factory  Manager's  staff  consists  of  a 
Cost-Clerk,  who  is  also  paymaster,  and  a  Purchasing  Clerk,  who 
is  also  Production-Order  Clerk.  The  Production-Order  Clerk 
originates  production-orders  on  the  factory  under  requisitions 
from  the  Superintendent. 

The  general  factory  manager  also  has  a  stores-ledger  clerk, 
who  is  responsible  for  all  records  of  material  up  to  the  time  these 
records  are  turned  over  to  the  cost-clerk;  a  stenographer;  a 
superintendent,  who  supplements  the  general  factory  manager  in 
all  his  work,  but  is  more  especially  responsible  for  the  direct 
supervision  of  the  foremen.  The  drawing-room  is  in  charge  of 
the  constructing  engineer  and  chief  draughtsman,  who  has  charge 
of  the  subordinate  draughtsmen,  and  undertakes  the  designing  of 
new  machinery  and  the  remodeling  of  old,  under  the  immediate 
direction  of  the  superintendent.  The  chief  draughtsman  is  also 
responsible  for  ihe  revision  of  the  schedules  of  machine  details 
which,  of  course,  must  be  made  to  conform  to  the  drawings  in  his 
possession. 

Each  department  has  a  foreman  in  charge,  who  supplies  the 
workmen  with  pads  of  time-cards,  and  pads  of  material-order 
cards.  All  stores  are  kept  by  a  storekeeper  who,  with  one  assis- 
tant, has  in  charge  all  raw  material,  or  rough  stores,  and  also  all 
semi-finished  material  or  parts,  as  well  as  finished  parts  and  ma- 
chines. Heavy  material,  such  as  rough  castings  and  finished 
machines,  which  from  their  bulk  and  the  expense  attendant  upon 
handling  them,  cannot  economically  go  into  the  storeroom,  are 
delivered  to,  and  kept  in,  the  part  of  the  factory  where  they  are  to 
be  used;  the  nearest  foreman  is  made  responsible  for  their  care 
and  disbursement. 

The  president  has  as  his  executive  force,  a  stenographer,  a 
filing  clerk,  a  book-keeper,  and  an  order-clerk,  who  handles  the 
shipping  orders  and  does  the  billing,  as  well  as  renders  general 
assistance  to  the  book-keeper.  Directly  responsible  to  the  presi- 
dent is  the  general  manager  of  the  Sales  Department,  who  has  a 


THE  COMPLETE  COST-KEEPER.  297 

number  of  salesmen  responsible  in  turn  to  him.  A  branch  office 
which  is  purely  a  department  of  the  selling  organization  is  re- 
sponsible, in  so  far  as  its  selling  functions  go,  to  the  general  man- 
ager of  the  sales  department,  but  for  its  finances,  directly 
responsible  to  the  President-Treasurer. 

A  complete  shop  telephone  system  gives  communication  from 
the  superintendent's  office  to  all  the  foremen,  and  to  the  stores 
department. 

The  only  bound  book  kept  is  a  ledger,  which  contains  the 
commercial  accounts,  and  from  which  the  general  statement  of 
the  business  is  made  up.  This  book  is  simply  a  general  ledger 
containing  personal  accounts  and  customers  accounts.  There  are 
no  other  books  employed  in  the  accounting  organization,  every 
other  record  being  made  either  on  cards  or  on  loose  sheets.  These 
cards  and  sheets  are  provided  for  as  to  their  storage  either  in  card- 
cabinets  or  in  binders,  or  in  filing  boxes.  The  same  record  at 
different  stages  of  its  w^ork  may  be  in  any  one  of  the  three  forms 
of  receptacle  specified. 

Origination  of  Production-Order. 

A  production-order  originates  either  from  a  specific  shipping- 
order,  which  demands  a  specific  machine,  or  else  from  the  deple- 
tion of  the  stock  of  a  given  machine,  or  machine  detail ;  Stock- 
shortage  is  immediately  reported  by  the  stores-ledger  clerk,  as  he 
has  a  schedule  showing  the  maximum  and  minimum  limits  not 
only  of  the  parts  of  machines  but  of  all  complete  machines.  The 
schedule  limits  of  stock  are  assumed  at  first,  and  revised  as  ex- 
perience may  dictate. 

The  very  size  of  the  concern  under  description,  or  rather,  its 
smallness,  precludes  any  necessity  for  having  a  formal  record  of 
the  instructions  that  the  superintendent  gives  to  the  production- 
order  clerk  for  the  creation  of  a  production-order ;  these  instruc- 
tions are  in  every  case  verbal,  the  superintendent  vitalizing  the 
production-order  as  soon  as  made,  and  assuming  the  responsibility 
by  affixing  his  signature  thereto. 

Other  orders,  termed  ''plant-orders,"  are  issued  by  the  pro- 
duction-order clerk.  These  cover  all  labor  and  material  expended 
for  the  betterment  of  the  plant,  or  for  experimental  purposes ;  in 
the  case  of  the  production-order  it  is  expected  that  a  direct  profit 


J298  THE  COMPLETE  COST-KEEPER. 

will  be  realized  from  all  work  ordered  to  be  performed,  while 
plant-orders  are  expected  to  be  indirectly  profitable.  Both  pro- 
duction-orders and  plant-orders  are  carbon  sheet  copies  in  dupli- 
cate, the  original  going  to  the  foreman,  who  is  to  do  the  initial 
work,  the  duplicate  remaining  at  the  desk  of  the  production-order 
clerk  where  it  is  filed  by  family,  that  is,  by  class  of  machine,  and 
number  of  machine,  or  class  of  work,  until  the  return  of  the  origi- 
nal order  with  the  foreman's  signature  gives  notice  that  the  order 
has  been  filled. 

Both  production  and  plant-orders  before  being  sent  to  the 
foreman  of  the  proper  production  department,  go  to  the  chief 
draughtsman,  who  supplements  each  order  with  the  drawings  need- 
ed for  its  production,  and  the  drawings  and  order  then  go  together 
to  the  department  foreman.  The  foreman  on  receipt  of  this  order 
with  its  drawings  starts  the  work,  making  immediate  provision 
for  identification  of  the  work  throughout  his  department,  either 
by  tags  showing  the  production-order  number  in  case  of  large 
pieces,  by  painting  the  production-order  number  on  the  piece,  or, 
in  case  of  a  large  number  of  small  pieces,  by  adding  to  the  recepta- 
cle containing  the  parts  a  memorandum-slip  bearing  the  produc- 
tion-order number. 

The  material-delivered  card,  signed  by  any  foreman,  obtains 
from  the  storekeeper  the  stores  needful  for  the  completion  of  an 
order.  At  any  time  during  the  progress  of  the  work,  or  at  its 
completion,  any  excess  of  material  may  be  returned,  recorded  on 
a  "material-returned"  card.  All  these  material-delivered  and  ma- 
terial-returned cards,  are  identified  by  having  the  production  or 
plant-order  number  upon  them. 

There  is  no  limitation  as  to  the  amount  of  material  which  a 
foreman  may  draw  for  the  completion  of  any  one  order,  but  as 
often  as  four  times  each  day  it  is  the  duty  of  the  assistant  store- 
keeper to  return  all  material-cards  to  the  stores-ledger  clerk,  on 
whom  the  responsibility  is  placed  of  seeing  that  the  proper  limits 
of  material  required  for  the  completion  of  any  order  are  not  ex- 
ceeded. 

The  Sub-Production-Order. 

The  sub-production-order  is  produced  in  duplicate  by  mani- 
folding by  any  foreman  who  may  require  the  product  of  any  other 


THE  COMPLETE  COST-KEEPER.  299 

department.  The  original  goes  to  the  department  making  the  re- 
quired product,  and  the  duplicate  to  the  office  of  the  superintend- 
ent. Both  original  and  duplicate  bear  the  production-order  num- 
ber under  which  the  foreman  using  the  sub-production-order 
number  is  operating.  On  the  completion  of  the  required  details 
by  the  department  receiving  the  sub-production-order,  the  order 
is  returned  with  the  work  to  the  originating  foreman,  who  checks 
the  sub-production-order,  certifies  its  completion,  and  forwards 
it  at  once  to  the  office  of  the  superintendent. 

A  plant-order  is  issued  by  the  superintendent  at  the  request  of 
any  foreman,  or  as  his  own  judgment  may  dictate;  plant-orders 
cover  all  work  in  the  nature  of  repairs  or  betterments  to  the  plant 
or  building,  all  special  tools  and  special  experiments,  and  in  fact, 
any  work  to  be  performed,  which  will  eventually  become  an  addi- 
tion to  the  plant  or  an  expense-charge  to  the  business.  These 
orders  are  made  in  duplicate  by  manifolding,  the  original  going 
to  the  foreman  of  the  department  required  to  produce  the  work, 
while  the  duplicate  remains  in  the  office  of  the  superintendent, 
plant-orders  being  handled  precisely  as  production-orders  are 
handled. 

There  is  one  case  in  which  it  is  necessary  to  make  an  excep- 
tion to  the  rule  requiring  all  production-orders  to  be  issued  by  the 
superintendent.  This  occurs  in  the  general  machine-shop,  where 
it  sometimes  happens  that  certain  machines  are  left  idle.  The 
foreman  of  that  department  is  supplied  with  a  pad  of  production- 
orders,  and  has  authority  to  issue  to  himself  an  order  for  the  un- 
dertaking of  such  work  as  will  keep  his  machines  busy,  sending 
the  duplicate  order  immediately  to  the  office  of  the  superintendent, 
on  whom  rests  the  responsibility  of  approving  the  order,  or  of 
communicating  with  the  foreman  and  stopping  the  work,  if  for 
any  reason  that  particular  work  is  not  justifiable  in  the  judgment 
of  the  superintendent.  In  no  case,  however,  is  work  stopped  until 
the  particular  operation  in  progress  is  completed. 

The  production  and  sub-production-orders,  with  the  plant- 
orders,  account  for  all  direct  labor  and  material,  and  a  portion  of 
the  expense-labor,  but  it  is  necessary  that  the  general  factory  man- 
ager, superintendent,  draughting  department,  the  foremen,  the 
general  laborers,  and  men  employed  in  the  production  of  power, 
heat,  and  light,  shall  have  some  definite  means  by  which  to  indi- 


300  THE  COMPLETE  COST-KEEPER. 

cate  the  services  which  they  have  rehdered  to  the  company.  To 
this  end  a  communication  is  addressed  to  all  the  heads  of  depart- 
ments, and  through  them  brought  to  the  notice  of  the  employees, 
which  communication  is  a  standing  order  under  which  all  em- 
ployees of  the  company  are  to  work.  The  standing  order  directs 
that  whenever  workmen  perform  any  of  the  operations  or  render 
any  of  the  services  enumerated  on  the  list  accompanying  the  order, 
the  labor-time,  together  with  any  material  that  may  be  drawn  from 
the  stores  department  necessary  to  complete  the  service,  shall  be 
charged  to  some  one  of  the  various  numbers  set  opposite  the  items 
enumerated.  These  numbers  are  called  standing-order  numbers, 
and  are  specific  orders,  to  be  treated  in  the  accounting  as  are  the 
production  or  plant-orders. 

For  convenience  and  as  an  aid  to  all  persons  concerned  in  be- 
coming familiar  with  these  numbers,  the  numbers  from  i  to  499 
relate  to  the  plant  and  expenses  incidental  to  production.  The 
numbers  from  500  to  999  specify  a  general  classification  of  the 
product,  and  relate  to  such  operations  upon  the  product  as  test- 
ing, which  operation  though  it  may  be  performed,  as  in  the  case 
of  a  dynamo,  upon  a  specific  machine,  gives  information  so  gen- 
eral in  its  character  as  to  be  of  service  to  the  entire  class  to  which 
this  machine  belongs,  and  therefore  is  an  item  of  cost  which  may 
more  justly  be  spread  over  the  entire  related  product,  than  charg- 
ed to  the  individual  machine  under  test. 

The  plant-orders  commence  with  1,000  and  continue  in  nume- 
rical sequence,  each  number  being  preceded  by  the  letter  "P." 
Production-orders  commence  at  1,000  and  run  in  sequence,  but 
have  no  distinguishing  letter. 

The  numbers  from  i  to  499  are  subdivided  into  five  general 
groups  defined  as  follows: 

From  I  to  99,  additions  to,  or  betterments  of,  the  "perma- 
nent investment,"  buildings  and  plant.  100  to  199  report  depre- 
ciations of  the  permanent  investment,  and  cost  of  up-keep  of 
plant.  200  to  299,  carry  the  time-cost  of  foremen,  superinten- 
dents, draughtsmen,  and  all  other  indirect  labor  excepting  "engi- 
neers," American,  or  "engine  drivers,"  English.  300  to  399  cover 
all  labor  and  material  used  in  the  generation  and  distribution  of 
power,  heat,  and  light.  400  to  499  include  all  alterations,  errors, 
and  changes;  also  fixed  charges,  such  as  taxes  and  insurances. 


THE  COMPLETE  COST-KEEPER.  301 

Standing  Order  Numbers. 

O  Preliminary  work  on  land,  grading,  filling,  drainage, 
pile  driving,  etc. 

5  Additions:  Buildings,  etc. 

10  Additions:   Fixtures,  partitions,  benches,  and  general 
equipment. 

15  Additions :  Power,  heat,  light,  and  protective  equipment. 

20  Additions:   Machine-tools,   standard. 

25  Additions:  Machine-tools,  special. 

30  Additions :  Small  tools  and  electrical  instruments. 

35  Additions:  Jigs  and  dies. 

40  Additions:    Patterns. 

45  Additions :   Drawings. 

50  Additions:  Office  fixtures  and  furniture. 

75  Experimental  and  investment.  ' 

Repairs,  Depreciation^  and  Care  of  Plant. 

100  Repairs  on  land:  Grading,  draining,  piles,  etc. 

105  Repairs  to  buildings. 

no  Repairs    to    fixtures,  partitions,  benches,  and  general 
equipment. 

115  Repairs  on  power,  heat,  light,  and  productive  equip- 
ment. 

120  Repairs  to  machine-tools,  standard. 

125  Repairs  to  machine-tools,  ^special. 

130  Repairs  to  small  tools  and  electrical  instruments. 

135  Repairs  to  jigs  and  dies  (over  $40.00). 

140  Repairs  to  patterns. 

145  Repairs  to  drawings. 

150  Repairs  to  office  fixtures  and  furniture. 

155  Care  of  grounds. 

160  Sweeping,  whitewashing,  and  cleaning. 

165  Tool-room  and  grinding  tools. 

170  Setting  up  machinery. 
Moving  machinery. 
Work  and  material  on  side-lines  of  shafting. 

175  Qeaning  and  care  of  machinery. 

180  Collecting  and  sorting  scrap. 

185  Watchman. 


302  THE  COMPLETE  COST-KEEPER. 

Supervision  of  Indirect  Labor  and  Material. 

200  Private  number  (superintendent). 

205  Engineers,  electrical  and  mechanical. 

210  Foremen. 

215  Inspectors. 

220  Factory  office,  clerical. 

225  Factory,  clerical. 

226  Factory,  inventory. 

230  Laborers  not  chargeable  elsewhere. 

235  Over-time. 

240  Experimental. 

245  Extra  testing 

246  Field-coil  testing, 

250  Draughting  department  supplies. 

.    255  Pattern  department  supplies. 

260  Blacksmith  department  supplies. 

265  Factory  supplies,  general,  including    files    and    small 
drills. 

275  Receiving  department. 

277  Trucking  and  freight  handling. 

280  Stores  department. 

285  Shipping  department. 

287  Packing  and  boxing. 

300  Engineers. 

305  Firemen. 

310  Care  of  engines. 

315  Care  of  motors  and  generators. 

320  Care  of  main  shafting,  pulleys,  and  belts. 

325  Care  of  boilers. 

350  Building,  renewals. 

355  Fuel. 

356  Fuel  handling. 
360  Oil  for  gas. 

365  Oil  and  Waste  for  generators  and  engines. 

370  Incandescent  lamps  and  fixtures,  wire,  etc. 

400  Draughting  expenses  for  sales  department. 

410  Errors,  extra  costs. 

411  Restoring    "returned    goods"    to    good  condition    for 
stock. 


THE  COMPLETE  COST-KEEPER.  303 

415  Changes  on  orders  for  special  pulleys,  and  other 
changes. 

420  Expenses  for  road  repairs  not  chargeable  to  customer. 

450  Office  supplies,  stationery,  etc. 

451  Cost-department  supplies. 

455  Express  not  charged  on  material   or  shipments. 

457  Freight  not  charged  elsewhere. 

460  (Private  number)  salaries,  officers. 

465  (Private  number)  salaries,  office. 

470  Advertising,  printed  matter. 

475  Salaries,  salesmen. 

480  Salesmen's  travelling  expenses. 

Standing-Order  Numbers  Production. 

500     Material  incidental  to  winding  department  production, 

505 

■   510  Mica  splitting. 

511  Micanite. 

512  Cloth  cutting. 

513  Clips,  cutting,  to  go  under  binding  wire. 

514  Bobbins,  winding,  including  cotton. 

,515 

520     Scrap. 

525     Other  indirect  material   (printed  instruments,  etc.). 
530 
535 
540 

545 

550    Shaft  gfatiges. 

By  the  use  of  the  foregoing  system  every  item  of  labor  per- 
formed throughout  the  entire  plant  from  that  of  the  general  fac- 
tory manager  down,  and  all  material  disbursed,  is  accounted  for 
by  being  charged  either  to  a  standing  order,  production-order, 
sub-production-order,  or  plant-order  number.  Without  regard 
to  the  intermediate  records  necessary  for  securing  the  informa- 
tion, all  the  foregoing  orders  are  recorded  as  to  their  costs,  either 
on  a  production  cost-card,  a  plant  cost-card,  or  a  standing  order 
cost-sheet ;  the  production  and  plant  cost-cards  are  complete  when 
the  specific  order  which  creates  them  is  complete;  the  standing 


304  THE  COMPLETE  COST-KEEPER. 

order  cost-sheet  is  perpetual  until  all  its  space  is  filled  in,  just  as 
the  standing  order  is  perpetual. 

Other  records  known  as  "Department  Cost-Sheets"  are  creat- 
ed, which  show  the  relation  of  the  direct  expenditures  to  the  in- 
direct expenditures  of  each  department.  This  sheet  is  not  a  part 
■of  the  general  system  of  accounting  in  the  sense  that  every  other 
record  is  a  part  of  it,  as  the  continuance  or  discontinuance  of  this 
sheet  would  in  no  way  affect  the  complete  accounting  of  the  fac- 
tory, But  this  department  cost-sheet  is  of  great  value  to  the  gen- 
eral factory  manager,  because  of  the  manner  in  which  it  presents 
the  statistics  of  the  entire  plant,  and  of  the  separate  departments 
cas  different  members  of  the  one  producing  unit.     See  pp.  336-340. 

The  material  requisition-card  previously  referred  to  is  a  no- 
tice from  the  storekeeper  to  the  purchasing  agent,  informing  him 
of  the  depletion  of  any  article,  the  storekeeper  sending  his  requi- 
sition to  the  stores-ledger  clerk,  who  first  checks  it  to  be  sure  that 
this  purchase  will  not  increase  the  quantity  of  goods  on  hand  be- 
yond the  established  maximum,  and  then,  after  approval  by  the 
superintendent,  forwards  the  material-requisition  to  the  purchas- 
ing agent,  who  makes  a  manifold  order,  sending  the  original  order 
to  the  party  from  whom  he  would  purchase,  and  filing  the  dupli- 
cate in  a  card-index  tray,  in  alphabetical  order  under  the  name  of 
the  vendor.  The  requisition  is  indorsed  with  the  purchase-date 
and  order-number,  and  returned  to  the  stores-ledger  clerk.  The 
stores-ledger  clerk  has  a  ledger  arranged  in  groups  and  sub- 
groups, showing  the  quantities  of  all  stores  on  hand.  This  ledger 
•consists  of  a  series  of  cards  stored  in  a  card-cabinet,  the  cards 
-which  record  related  material  being  placed  together,  that  is  to  say, 
all  grey  iron-castings  records  are  placed  in  one  group,  all  bronze 
castings  in  another  group,  and  so  on.  General  supplies,  such  as 
wire  cloth,  mica,  and  other  insulating  material  are  grouped  together, 
and  the  group  items  are  arranged  alphabetically  by  the  names  of 
the  articles.  Taking  a  specific  article  of  any  group,  the  rough 
casting  or  material  disbursed  in  producing  the  piece  appears  on 
the  first  card,  the  same  piece-number  being  given  to  the  article 
in  its  next  stage  of  production  on  the  second  card  in  the  file-group 
"bearing  that  number,  while  completely  finished  machines  are  re- 
•corded  on  the  last  card  of  the  group.  Each  card  bears  in  its  upper 
right-hand  corner  the  minimum  and  maximum  limitations  as  to 
<iuantity  to  be  carried  in  stock. 


THE  COMPLETE  COST-KEEPER.  305 

When  the  material-requisition  is  returned  to  the  stores-led- 
ger clerk  from  the  purchasing  agent,  it  is  filed  immediately  be- 
hind the  previously  filed  cards  containing  the  record  of  this  par- 
ticular article,  so  that  without  making  a  single  mark  the  stores- 
ledger  clerk  records  in  his  card-ledger  what  goods  have  been 
ordered,  when  they  were  ordered,  when  they  are  expected  to  be 
received,  of  whom  they  were  ordered,  and  the  purchase  order- 
number  on  which  they  were  ordered. 

When  the  storekeeper  receives  from  a  foreman  a  material- 
delivered  card,  which  is  a  requisition  on  the  storekeeper  for  cer- 
tain articles,  if  he  should  not  have  these  articles  in  hand,  he  passes 
this  material-delivered  card  to  the  stores-ledger  clerk,  who  enters 
on  his  stores-ledger  card  in  the  delivered  column,  in  pencil,  the 
quantity  called  for,  and  returns  the  material-delivered  card  imme- 
diately to  the  storekeeper,  having  indorsed  across  the  face  of  the 
card  the  word  "noted."  Thus  the  stores-ledger  is  made  to  show 
all  demands,  and  also  the  record  of  what  measures  have  been 
taken  to  meet  those  demands,  and  so  prevents  a  depletion  of  the 
stores  without  warning. 

The  production-orders  are  filed  at  the  desk  of  the  order- 
clerk  in  "family"  groups,  that  is  to  say,  all  orders  for  similar 
articles  or  related  parts  are  grouped  together,  as  it  is  frequently 
the  case  with  the  larger  parts  that  a  number  of  orders  for  the 
same  part  in  varying  sizes  will  be  in  the  factory  at  one  time.  All 
production-orders  are  issued  to  each  department  separately,  hence 
if  an  article  requires  the  work  of  several  departments  for  its  com- 
pletion, two  or  more  production-orders  are  issued,  and  duly  re- 
corded in  the  file  of  the  production-order  clerk,  which  may  be 
consulted  for  any  information  in  regard  to  any  orders  in  the  fac- 
tory for  articles  of  the  given  kind,  and  contains  the  full  record  of 
the  current  orders  for  finished  stores  in  progress,  hence  it  is  al- 
ways possible,  by  simply  consulting  the  record  of  the  stores-led- 
ger, to  determine  how  soon  any  number  of  machines  of  a  given 
kind  can  be  delivered. 

Here  the  mere  order  of  filing  or  arrangement  of  the  cards  se- 
cures results  which,  under  a  book  system,  could  be  obtained  only 
by  the  establishment  of  several  separate  records ;  and  in  general 
terms  it  may  be  said  that  the  facility  with  which  cards  bearing  re- 
lated records  can  be  placed  in  immediate  juxtaposition,  and  in 


3o6  THE  COMPLETE  COST-KEEPER. 

true  sequence,  gives  the  card  a  great  advantage  as  a  factory  re- 
cord over  any  form  of  records  kept  in  bound  books,  however 
ingeniously  the  book  forms  may  be  devised. 

A  mechanical  time  recorder  is  used  to  record  the  time  of  arri- 
val and  departure  of  the  foremen  and  all  under  them.  The  time- 
recorder  sheets  when  delivered  to  the  office  of  the  cost-clerk,  who 
is  also  paymaster,  are  checked  against  the  time-cards  returned,  to 
see  that  there  is  perfect  accord  in  records.  Any  disagreements  are 
referred  to  the  foreman  in  charge,  or  if  the  error  is  one  that  will 
affect  the  foreman,  referred  to  the  ^general  factory  manager  for 
investigation  and  settlement.  As  a  matter  of  fact,  a  disagreement 
in  the  records  very  rarely  occurs,  and  when  it  does  happen  it  is 
generally,  found  to  result  from  an  error  on  the  part  of  one  of  the 
men,  most  often  a  laborer,  in  recording  some  expense  operation. 
The  accuracy  of  the  records  on  the  time-card  being  assured  when 
the  cards  are  received  from  the  departments,  they  need  merely  b^ 
arranged  in  sequence  by  workmen's  numbers  to  make  them  ready 
for  entry  on  one  pay-roll  if  time-cards,  or,  if  piece-work  cards,  for 
extension  on  other  pay-roll.  In  case  of  piece-work  both  the  time 
and  the  amount  are  entered.  As  the  cards  are  computed  at  the 
various  time-rates,  the  value  of  the  labor  on  each  card  is  noted 
thereon,  and  the  cards  are  then  sorted  to  the  respective  order- 
numbers  against  which  they  are  charged. 

Analysis  or  "distribution"  sheets  are  provided  as  shown  in  the 
accompanying  forms ;  these  sheets  bear  the  order-numbers  in  se- 
quence, each  sheet  providing  for  records  of  both  material  and  la- 
bor, and  one  set  of  sheets  covering  the  expenditures  of  labor  and 
material  for  one  week.  The  time-card  totals,  after  the  cards  are 
sorted  by  order-number,  are  entered  on  these  distribution-sheets, 
only  the  hours  and  value  expended  on  each  order  being  noted. 
Where  two  or  more  cards  are  written  against  the  same  order-num- 
ber within  the  same  day,  the  additions  are  made  by  the  cost-clerk 
mentally,  and  a  single  combined  entry  is  made  on  the  distribution- 
sheet.  At  the  end  of  the  week  when  all  the  time-cards  are  entered 
and  the  totals  charged  to  all  the  order-numbers,  the  sum  of  these 
totals  is  taken  and  proved  against  the  pay-roll  total,  to  show  that 
the  entire  amount  of  money  spent  for  labor  that  week  has  been 
properly  accounted  for  under  the  various  order-number  charges. 
The  material-cards  are  treated  in  the  same  way  as  to  their 


THE  COMPLETE  COST-KEEPER.  307 

sorting  for  entr}-  on  these  analysis-sheets:  as  they  come  from 
the  storekeeper  to  the  stores-ledger  clerk  they  are  first  entered 
in  the  stores-ledger  for  quantities ;  they  are  then  sorted  to  order- 
numbers  and  entered  on  the  analysis-sheets  under  the  various  or- 
der-numbers, so  that  at  the  end  of  the  week  the  total  amounts  of 
material  disbursed  to  any  one  order  are  shown.  The  gross  foot- 
ings of  these  totals  show  the  aggregate  material  disbursed  in  the 
plant  during  each  week,  and  this  footing  affects  the  permanent  in- 
ventory as  a  deduction  therefrom,  as  will  be  explained  later  in 
the  section  bearing  on  the  inventory. 

Accuracy  of  the  Storeroom  Record. 

The  method  pursued  by  the  stores-ledger  clerk  to  insure  the 
accuracy  of  the  stores-ledger,  is  to  prove  its  correctness  by  send- 
ing to  the  storekeeper  the  names  of  several  articles  under  his 
charge,  with  the  request  for  an  actual  count  and  memorandum  of 
each.  The  storekeeper  has  no  previous  information  as  what  is 
to  be  counted,  and  in  the  course  of  thirty  to  sixty  days  every  arti- 
cle is  counted  and  checked  with  the  storeroom  record  at  least 
once,  thus  sufficiently  proving  the  general  accuracy  of  the  stores- 
record.  This  practice  naturally  results  in  making  the  storekeeper 
careful,  and  prevents  the  stores-ledger  from  becoming  merely  a 
routine  record  of  no  real  use  or  accuracy,  as  it  might  easily  become 
if  not  often  verified. 

The  permanent  inventory  is  merely  a  record  of  the  current 
value  of  all  stores,  as  the  balances  on  the  cost-cards  show  the 
current  quantity  of  all  stores  and  all  orders  in  process  of  pro- 
duction. The  permanent  inventory,  therefore,  is  the  equivalent 
in  value  of  the  material  which  is  recorded  in  the  stores-ledger,  the 
stores-ledger  being  divided  into  several  large  groups  like  the 
following :  Iron  castings,  unfinished  iron  castings,  partly  finished 
bronze  castings,  purchased  parts  in  store,  factory  supplies,  obso- 
lete stores  and  parts,  finished  machines,  and  finished  machines  ob- 
solete, each  of  these  groups  being  represented  by  a  sheet  of  the 
permanent  inventory,  the  balance  on  which  represents  the  value 
of  the  balances  on  the  stores-ledger.  Once  every  sixty  days  the 
stores-ledger  clerk  is  required  to  extend  the  balances  on  all  his 
ledger-cards  at  the  prices  of  the  last  balances  as  shown  on  the 
cards,  and  the  sum  total  so  obtained  of  the  value  balances  on  all 


3d8  the  complete  COST-KEEPER. 

the  cards  in  a  group  should  equal  the  corresponding  balances  on 
the  sheet  in  the  permanent  inventory.  The  variation  between 
these  two  totals  will  define  the  discrepancy  existing  in  this  mate- 
rial-calculation. The  variation  is  always  trifling,  and  is  suffi- 
ciently explained  by  the  results  being  so  different,  when  the  mate- 
rial is  computed  in  small  items,  from  the  totals  obtained  with 
large  items  and  amounts.  The  variation,  wherever  it  is,  is  balanced 
by  changes  in  the  permanent  inventory  record,  since  the  stores- 
ledger  balance  manifestly  is  the  less  liable  to  inaccuracy.  The 
sum  of  all  the  permanent  inventory  sheets  at  any  time  should  show 
the  same  amount  as  that  which  appears  in  the  general  ledger  of 
the  company,  under  the  account  heading  of  "stores." 

A  finished-production  record  is  arranged  on  piece-work  cards 
like  the  exhibit  given,  on  which  the  history  of  the  cost  of  every 
operation  is  shown.  To  make  this  record  the  cards  are  arranged 
in  large  groups  by  departments,  and  sub-arranged  by  operations 
in  their  working  order  in  that  department,  all  the  cards  of  a  given 
operation  being  arranged  in  series  by  machine-number,  or  part- 
number,  or  name,  together.  The  day-rate  time-cards,  after  entry 
on  the  analysis-sheets,  are  again  sorted  to  departments,  and  ar- 
rangd  by  operations,  and  sub-arranged  by  machine-number,  or 
part-number,  or  name,  exactly  as  the  piece-work  record-cards 
are  arranged.  It  thus  becomes  possible,  when  an  accumulation  of 
the  time-cards  is  obtained,  to  make  tabulations  of  these  in  con- 
densed form  on  this  piece-work  record-card,  and  these  piece-work 
record-cards  exhibit  the  facts  warranting  alteration  of  the  piece- 
rates,  and  also  are  used  to  record  such  rate-alterations,  when 
made. 

Since  the  time-cards  returned  for  piece-work  come  in  by  de- 
partments and  are  immediately  arranged  by  workman's  numbers, 
they  may  be  priced  readily  from  this  piece-work  record,  as  both 
sets  of  cards  will  be  found  in  the  same  order  almost  without  varia- 
tion. As  a  general  rule,  workmen  should  be  assigned  numbers 
indicating  the  departments  in  which  they  work  and  the  operations 
which  they  perform.  Of  course  it  is  understood  that  this  cannot 
be  an  invariable  practice,  but  the  workman's  number  can  be  made 
to  give  a  fairly  accurate  indication  of  the  operation  performed 
if  care  is  taken  that  the  pav-roll  is  arranged  so  as  to  have  the 
workmen  appear  on  it  in  their  operative  order  throughout  the  fac- 


THE  COMPLETE  COST-KEEPER.  309 

tory.  An  alphabetical  record  of  workmen  is  kept  on  cards  like 
that  shown  in  the  form.  This  record  is  filed  in  two  sections,  one 
section  representing  the  workmen  now  employed  by  the  company, 
the  other  section  those  previously  employed  by  the  company.  As 
the  cards  give  the  full  factory  history  of  each  workman,  they  are 
likely  to  be  of  future  value,  besides  being  of  current  value  to  the 
paymaster  as  a  reference  in  case  he  is  not  certain  as  to  the  rate  at 
which  a  workman  is  employed. 

A  record  of  workmen  on  cards  like  that  shown  in  the  form, 
also  enables  a  comparison  to  be  made  of  their  earnings  on  a  time- 
basis  and  on  piece-work.  This  enables  the  superintendent  and 
the  cost-keeper  to  observe  the  varying  results  of  different  methods 
of  recompensing  work,  as  well  as  to  make  comparisons  of  the  effi- 
ciency of  different  workmen  on  the  same  job.  These  cards  may 
be  arranged  alphabetically  by  workmen's  names,  but  beUer  by 
departments,  with  a  sub-arrangement  by  workmen's  numbers. 

Each  week  the  totals  of  material  and  labor  appearing  on  the 
analysis-sheet  are  transferred  to  their  respective  production,  plant, 
or  standing  order  cost-card,  so  that  the  cost-card  receives  in  one 
item  the  amount  expended  upon  either.  Orders  that  are  com- 
pleted during  the  week  have  their  balance  of  material  or  labor 
charged  to  them.  The  cost-card,  as  shown,  provides  for  an  entry 
at  the  top,  showing  the  amount  of  labor  and  material  expended 
on  the  last  production  of  the  same  article,  or  on  the  production 
which  showed  the  lowest  cost.  As  the  material  and  labor  charges 
come  to  this  card  a  comparison  is  made  easy,  so  tha*  any  failure  to 
report  material  expended,  or  any  over  expenditure  of  material  or 
labor  is  immediately  noted.  After  the  cost-cards  are  completed 
they  are  filed  in  classes,  that  is.  all  cards  showing  cost  on  similar 
order-numbers  or  similar  machines,  together;  consequently  com- 
parative costs  are  easily  obtained  and  discrepancies  in  successive 
costs  of  the  same  order  are  made  apparent. 

The  Record  of  Plant. 

The  economic  record  of  all  machine-tools  is  kept  on  cards, 
shown  in  the  form  herewith,  and  each  of  these  machine-tools  has 
another  card  of  specific  record,  which  exhibits  its  original  cost  and 
gives  its  complete  history,  together  with  its  repairs,  depreciation, 
and  original  value.    These  cards  are  classified  first  by  departments. 


3IO  THE  COMPLETE  COST-KEEPER. 

then  locally  in  the  department,  all  like  machines  or  tools  being 
grouped  together.  Since  all  items  recorded  as  to  their  costs  on 
the  plant-cost  cards  are  either  betterments  or  expenses,  these 
charges  fall  under  one  of  the  standing  order  numbers ;  after  hav- 
ing their  totals  carried  to  the  standing  order  cost-sheet,  these 
standing  order  charges  are  resorted  to  departments  and  posted  to 
these  record  or  plant-cards,  so  that  they  show  not  only  the  original 
cost,  but,  in  the  form  of  a  running  account,  the  cost  of  repairs  on 
every  machine,  tool,  or  die  used.  An  individual  card  is  given  to 
every  machine  or  tool  down  to  a  value  of  $40.00.  Below  that 
valuation,  charges  are  made  to  groups  of  related  tools,  one  card 
representing  each  group.  For  instance,  such  a  group  might  be 
files  on  hand,  represented  by  balance  June  i,  showing  forty-eight 
and  two-third  dozen  in  use,  value  $92.00.  The  best  practice  for 
obtaining  depreciation  and  up-keep  in  hand-tools,  is  to  charge  off 
all  additions  and  replacements  immediately  as  expense,  letting  the 
value  on  the  books  stand  the  same  from  one  year's  end  to  another, 
until  some  marked  increase  or  decrease  of  the  particular  invest- 
ment is  made.  These  cards,  each  card  showing  the  value  of  a 
group  from  year  to  year,  need  be  changed  or  corrected  only  by  an 
annual  inventory. 

Shipping  orders  are  made  out  in  duplicate  by  the  order-clerk 
on  receipt  of  a  communication  from  the  customer,  or  the  general 
sales  manager.  The  original  is  filed  at  the  order-clerk's  desk  in 
a  tray,  alphabetically,  until  goods  are  shipped,  the  duplicate  going 
directly  to  the  superintendent  to  advise  him  as  to  current  demands 
upon  the  product.  The  superintendent  sends  the  shipping  order 
to  the  shipping  clerk,  who  makes  the  shipment  and  forwards  the 
order  to  the  cost  department  to  have  the  cost  entered  upon  it. 
The  shipping  order  is  then  returned  to  the  order-clerk,  who  in- 
dorses on  the  original  the  date  of  shipment,  and  files  the  duplicate 
alphabetically  by  the  purchaser's  name  in  a  card-index  cabinet,  so 
that  all  the  orders  from  any  one  customer  are  brought  together. 
The  original  shipping  order  goes  from  the  order-clerk  to  the  as- 
sistant bookkeeper,  who  prices  it,  that  is,  puts  the  selling  price 
on  it,  unless  this  has  been  previously  determined  by  the  general 
sales  manager.  The  order  is  then  billed  and  goes  through  the 
regular  routine  of  the  accounting  department.  The  original  order 
becomes  a  page  in  the  sales-book,  produced  by  assembling  these 
sheets  in  a  binder. 


THE  COMPLETE  COST-KEEPER.  311 

If  a  shipping  order  calls  for  a  machine  or  part  which  cannot 
be  shipped  immediately,  the  superintendent  turns  this  shipping 
order  over  to  the  production-order  clerk,  who  makes  a  produc- 
tion-order therefor,  sending  it  into  the  factory  through  the 
draughting  department,  as  explained  previously,  indorsing  upon 
the  production-order  and  upon  the  shipping  order  the  date  at 
which  shipment  is  promised,  and  if  this  date  of  shipment  cannot 
be  made  to  agree  with  the  purchaser's  demand  as  it  came  to  him, 
the  production-order  clerk  sends  to  the  shipping  clerk  an  advice- 
slip  giving  the  revised  date. 

Officials. 

President  and  Treasurer.  Duties,  the  general  conduct  of  the 
business;  the  formulation  of  its  policy  and  the  managing  of  the 
sales  department,  as  well  as  the  directing  of  the  administration  ot 
the  financial  affairs  of  the  concern. 

The  Secretary-,  who,  under  the  supervision  of  the  president, 
conducts  the  general  correspondence  of  the  business. 

A  General  Factory  Manager,  who  is  an  engineer,  and  abso- 
lutely controls  the  production,  and  determines  all  new  designs. 

A  Superintendent,  who  performs  all  the  duties  ordinarily  per- 
taining to  this  office,  being  directly  responsible  to  the  general  fac- 
tory manager. 

Ginstructing  Engineer  and  Chief  Draughtsman. 

Purchasing  Agent  and  Production-Order  Qerk. 

Cost-Qerk  and  Paymaster. 

Stores-Ledger  Qerk. 

Storekeeper,  and  Boy  Assistant. 

Shipping  Clerk. 

Filing  Qerk. 

Foreman  of  Construction. 

Foreman  of  Assembling. 

Under  Foreman. 

Bound  Account  Books  Used. 

A  General  Ledger.  This  book  has  no  connection  whatever 
with  the  cost-keeping. 


312  THE  COMPLETE  COST-KEEPER. 

Organization  of  the  Storeroom. 

The  storeroom  is  provided  with  shelving,  bins,  boxes,  and 
vertical  stalls  for  steel,  iron,  and  copper,  in  bars  and  sheets. 

The  freight  elevator,  operating  between  the  basement  and  the 
upper  floors,  passes  through  one  corner  of  the  storeroom.  There 
are  two  windows  and  two  gates,  one  at  each  end  of  the  storeroom. 

The  stores-ledger,  consisting  of  cards  filed  in  a  cabinet,  is 
kept  in  the  counting-room  on  the  theory  that  if  the  storekeeper 
wants  to  know  what  is  in  his  room  he  should  look  in  the  proper 
place  in  his  own  department  and  find  it,  while  the  counting-room 
needs  the  stores-ledger  at  hand  to  answer  questions  which  are 
constantly  arising. 

The  Use  of  Punches  by  Officials. 

Punches  are  used  by  all  officials  and  foremen  in  place  of 
written  signatures,  to  indicate  approval  of  cards  in  hand,  or  re- 
ceipt of  stores,  or  for  any  other  purpose  commonly  served  by  a 
written  signature. 

Description  of  Card  Forms. 

Card  form  A.  Tool  Card.  This  card  bears  the  name  of  the 
tool  and  the  tool-number,  the  cards  being  filed  in  numerical  se- 
quence an  accession  taking  the  next  number  following  that  of  the 
last  card.  No  tools  appear  on  this  record  except  those  properly 
classified  as  machine-tools,  or  factory  machinery,  including  en- 
gines, boilers,  pumps,  and  also  dies  and  arbors,  valued  at  $40.00 
and  upward  each.  These  cards  are  kept  in  the  cost-department, 
and  are  originally  filled  from  the  receivers'  card,  which  gives  first 
notice  of  the  receipt  of  any  tool. 

Card  form  B.  Valuation  Record  of  Tools.  These  cards  are 
filled  and  kept  in  the  cost-department,  being  filled  at  the  same  time 
as  Card  A,  and  supplemented  from  time  to  time  by  further  infor- 
mation as  received.  The  cards  are  arranged  in  order  of  factory 
departments,  the  cards  belonging  to  each  department  being  arrang- 
ed by  kind  or  class  of  tool,  all  the  cards  referring  to  tools  of  the 
same  class  being  arranged  in  numerical  sequence.  The  face  of 
this  card  contains  a  full  description  and  history  of  the  tool  with 
its  initial  cost,  also  its  various  locations  in  the  factory,  if  it  has 


THE  COMPLETE  COST-KEEPER.  313 


1 

i                                                              Name. 

No. 

i 

! 

^ 

•. 

I 

Card  Form  A.     Tool-Card.     Size  5  ins.  x  3  ins.     White. 


Date. 

Value. 

Repairs. 

Total. 

Date. 

Depr'n. 

Bal. 

- 

^ 

' 



Card  Form  B.     Valuation  Record  of  Tools.     5  ins.  x  3  ins.     White. 


314  THE  COMPLETE  COST-KEEPER. 

been  moved,  its  estimated  life,  and  rate  of  depreciation.  The  back 
of  the  card  contains  the  financial  history  of  the  tool,  commencing 
with  its  first  cost  and  afterwards  recording  all  additional  expendi- 
tures which  could  properly  be  classified  in  the  first  column  under 
value;  in  other  words,  in  this  first  column  records  of  permanent 
investment  only  are  entered.  In  the  second  column,  headed  "re- 
pairs," cost  of  installation  and  current  repairs  are  recorded.  The 
third  column  gives  the  total  of  the  first  two  columns.  At  the  right, 
in  the  "depreciation"  column,  the  amounts  charged  off  annually, 
as  well  as  the  sale  of  the  tool,  if  this  is  ever  made,  are  recorded. 
The  column  at  the  extreme  right,  headed  "balance,"  shows  the 
present  value  of  the  tool,  after  all  deductions  are  made.  If  a 
tool  is  sold  and  the  balance  column  shows  a  remaining  unliquid- 
ated indebtedness  this  is  charged  to  profit  and  loss,  and  credited 
to  the  proper  permanent  investment  account. 

The  least  final  value  of  any  machine-tool  may  be  assumed  to 
be  twenty  per  cent,  of  its  original  cost.  The  economic  termination 
of  the  life  of  a  machine-tool  is  reached  when  the  tool  becomes  obso- 
lete. A  tool  becomes  obsolete  when  there  are  newer  and  improved 
tools  of  the  same  class  which  can  do  the  work  in  less  time.  A 
tool  may  be  kept  up  to  its  original  efficiency  and  perfection  of 
output,  and  yet  be  uneconomical  in  performance,  because  other 
tools  can  be  obtained  in  the  open  market  which  much  exceed  its 
production.  Exactly  what  the  percentage  of  excess-production  of 
the  improved  tool  must  be  to  render  the  old  tool  obsolete,  must 
be  determined  by  circumstance  and  comparison.  Sometimes  a 
gain  of  as  little  as  three  per  cent,  in  production  renders  a  change 
imperative,  and  in  all  cases  it  may  be  assumed  that  a  ten  per  cent, 
increase  in  production  demands  removal  and  replacement. 

In  the  foregoing  no  attempt  is  made  to  discuss  the  theory 
of  depreciation,  as  such  a  discussion  would  be  of  such  length  as 
to  place  it  beyond  the  limits  of  this  present  article. 

Card  C.  Purchasing  Agent's  Quotation  Record.  These  cards 
are  made  by  the  purchasing  agent  as  soon  as  he  receives  a  quota- 
tion on  any  article,  and  they  are  kept  at  his  desk,  being  filed  alpha- 
betically by  names  of  the  articles  appearing  on  the  upper  line  of 
the  cards.  The  cards  show  the  dates  of  all  quotations  whether  the 
quotations  were  made  by  letter,  telephone,  or  salesman,  by  whom 
the  quotation  is  made,  the  number  or  size  of  the  article,  the  list- 


THE  COMPLETE  COST-KEEPER. 


515 


ARTICLE.                                                                                                                     1 

Date. 

.90 

By 

Producer. 

No.  or 
Size. 

List. 

Unit. 

Net. 

Disct 

Cat. 

Box.  No 



i 

* 

.... 

. 

,.... 

Card  Form  C.    Purchasing  Agent's  Quotation  Record.    6  ins.  x  4  ins.    Buff. 

price  or  net  price,  the  unit  on  which  the  price  is  based,  that  is, 
hundreds,  dozens,  j)ounds,  and  so  on,  the  discount,  and  at  the 
extreme  right  the  index-reference,  indicating  the  file  where  the 
catalogue  or  price-list  will  be  found  which  relates  to  this  article. 

Card  D.  Address  Card.  This  card  is  made  by  the  purchas- 
ing agent  whenever  he  receives  the  address  of  a  new  possible 
source  of  supply,  and  filed  in  the  same  cabinet  with  Card  C,  being 
arranged  alphabetically  by  the  name  of  the  seller  appearing  on  the 
upper  line  of  the  card.  Below  the  red  line  may  appear  a  memo- 
randum of  articles  purchased  from  the  individual  or  firm  named. 

Card  E.  Production-Order.  This  is  made  by  the  order- 
clerk  on  the  authority  of  the  general  factory  manager  whenever 
it  is  desired  to  issue  a  production-order  to  the  factory.  It  is 
made  in  duplicate  by  carbon  process,  the  original  or  thin  card 
being  sent  to  the  foreman  of  the  drafting  department,  where,  if 
necessary,  special  sketches  will  be  made  and  all  other  needful 
technical  matter  furnished,  which  then  goes  with  the  production- 
order  to  the  foreman  of  the  department  which  is  to  perform  the 
work.    The  foreman  or  sub-foreman  in  charge  of  the  work  keeps 


3i6  THE  COMPLETE  COST-KEEPER. 


Card  Form  D.    Address  Card.     6  ins.  x  4  ins.     Yellow. 

these  cards  in  a  little  card-file,  specially  designed  to  contain  the 
maximum  number  of  cards  which  he  would  have  in  his  department 
at  any  one  time.  On  the  completion  of  the  work  the  date  of  com- 
pletion is  noted  in  the  space  provided,  and  the  production-order 
is  immediately  returned  to  the  order-clerk,  who  can  supplement 
his  duplicate  of  the  order  with  the  date  of  completion,  and  the 
order  is  then  filed  in  numerical  sequence  in  a  card-cabinet  in  the 
cost-department.  To  go  back  a  moment,  when  the  order  is  made 
the  duplicate  is  retained  by  the  order-clerk,  leaving  his  desk  for 
only  a  few  minutes  in  order  that  the  cost-card  may  be  made  from 
it  by  the  cost-department;  it  is  then  returned  to  the  order-clerk 
and  by  him  filed  by  class  alphabetically,  so  that  all  the  orders  for 
a  given  class  of  parts  or  machines  shall  be  brought  together;  it 
is  held  at  his  desk  until  the  original  order  is  returned,  and  when 
supplemented  by  the  date  of  completion  is  filed  alphabetically  by 
class  in  the  card-cabinet  provided. 

Card  F.  Sub-Production-Order.  This  is  made  in  carbon 
duplicate  by  the  foreman  of  any  department,  when,  in  pursuance 
of  instructions  received  on  a  production-order,  it  becomes  neces- 
sary for  him  to  require  work  from  any  other  department.    The 


THE  COMPLETE  COST-KEEPER. 


3^7 


Production  Order   To  Department       Approved 

D 
No.                         j                                       Foreman 

Date  of  Order 

Please  execute  the  following  order,  charging  all  labor  and  material 
expended  to  the  ab6ve  number  and  return  this  order  on  completion  to 
!  the  Superintendent's  ofiBce.                                         Date  completed 

. 

■ 

I 

To  be  completed  by  date  below. 

Approved 

Superintendent. 

Cakd  Form  E.     Production-Order.     Thick  and  thin  cards  in  dupli- 
cate.    6  ins.  X  4  ins.    Yellow. 


sub-product  ion-order  is  given  the  number  of  the  production-order 
under  which  it  is  issued,  the  original  being  sent  to  the  foreman  of 
the  department  which  is  to  perform  the  work,  who,  on  completion 
of  the  work,  returns  the  order  with  the  work  to  the  foreman  by 
whom  th  sub-production-order  was  issued.  The  latter  immedi- 
ately returns  this  completed  order  to  the  ofl&ce  of  the  superintend- 
ent, where  it  goes  into  the  hands  of  the  order-clerk,  who  treats  it 
in  precisely  the  same  manner  as  he  treats  production-orders.  The 
carbon  copy  of  the  production-order,  as  soon  as  made  by  the  fore- 
man, is  sent  to  the  office  of  the  order-clerk,  who  files  it  immdiately 
behind  the  production-order  under  which  it  is  issued,  and  there 
retains  it  until  the  original  of  the  sub-production-order  is  returned 
to  him,  when  it  is  filed  in  the  same  manner  as  the  production- 
order  is  filed. 

Card  G.  Plant-Orders.  These  are  made  by  the  order-clerk 
at  the  instance  of  a  foreman  or  the  superintendent,  but  on  the 
authority  of  the  superintendent  only.  On  these  plant-order  forms 
all  orders  are  given  for  repairs  or  betterments,  or  any  work  that 
is  not  directly  production-labor.     Some  minor  repairs  may  be 


3i8 


THE  COMPLETE  COST-KEEPER. 


Plant  Order  No. 
P1997 


For  Department 


Date  of  Order 


To. 


Date  of  Completion. 


Please  execute  the  following  order  and  charge  all  labor  on  "Service 
Card  "  and  all  material  on  "  Material  Delivered  Card"  to  above  num- 
ber.    Return  this  card  to  me  when  this  work  is  completed. 


.  Superintendent 


•  Plant  and  Betterment  Order. 


Date. 

Material 

Value. 

Date. 

Labor. 

Hours 

Value. 



- 

Total  Labor 



Total  Material 

— 

Indirect  exp.  @. 

- 

Aggregate  Cost... . 

1 

Card  Form  G.   Thick  and  thin,  thick  card  printed  on  both  sides.  Plant- 
Order.     Size  6  ins.  x  4  ins.    White. 


THE  COMPLETE  COST-KEEPER.  319 

made  without  the  use  of  this  order,  but  these  are  comprehended 
in  the  standing  order  system.  The  original  plant-order  is  sent 
to  the  foreman  of  the  department  in  which  the  work  is  to  be  per- 
formed, and  handled  precisely  the  same  as  the  production-order; 
the  duplicate  instead  of  being  retained  by  the  order-clerk,  is  sent 
at  once  to  the  cost-department  where  it  is  filed  by  order-number, 
and  the  face  as  shown  becomes  the  cost-card.  When  the  work  is 
completed  the  duplicate  is  filed  in  numerical  series  under  the 
standing  order  number  which  indicates  the  classification  of  the 
expense. 

Time-Cards,  Hi,  H2,  H3,  H4,  and  H5.  These  are  made 
by  the  workmen  as  they  perform  various  kinds  of  work  through- 
out each  day.  In  the  majority  of  cases  one  man  will  have  either 
one  or  two  cards.  In  some  exceptional  cases  one  workman's  cards 
will  count  up  to  ten  or  twelve.  In  this  particular  factory,  150  men 
in  work  and  returning  time-cards  daily,  average  a  daily  aggre- 
gate of  about  235  cards.  The  cards  returned  from  any  man  must 
give  the  same  number  of  hours  as  his  record  on  the  time-clock 
sheets.  The  cards  are  handed  to  the  foreman  each  day,  and  he 
returns  them  to  the  paymaster  the  following  morning.  The  cards 
show  the  number  of  the  workman,  his  name,  the  quantity  and  de- 
scription of  the  work  on  which  he  was  employed,  the  time  of  work 
on  each  order,  and  the  order  number  on  which  he  works,  as  under 
the  order  system  in  use  a  number  is  given  for  everything  to  be 
done,  either  a  production,  plant,  or  standing  order-number.  Every 
card  must  bear  an  order-number.  The  workman  checks  the  opera- 
tion on  which  he  is  engaged,  or  if  the  name  of  the  operation  is  not 
printed  in  the  margin  of  the  card,  as  sometimes,  though  rarely, 
occurs,  it  is  written  in  the  space  provided. 

Card  Hi.  This  card  is  used  exclusively  in  machine-depart- 
ment one;  H2,  belongs  in  machine-department  number  two;  H3, 
in  the  winding  department ;  H4,  in  the  assembling  department ; 
H5,  in  the  power,  heat,  light,  and  drafting  department,  and  is  also 
used  by  all  workmen  engaged  in  general  work  which  is  not  directly 
productive.  The  cards  are  punched  in  the  lower  left-hand  comer 
spaces  to  show  whether  the  work  was  time-work  or  piece-work. 
This  punching  is  done  when  the  cards  are  made,  and  the  workman 
takes  an  hour-rate  or  piece-rate  card  as  may  be  demanded  by  the 
conditions  of  his  employment.    His  time  is  recorded  by  checking 


320 


THE  COMPLETE  COST-KEEPER. 


Man  No, 

I.  Machine  Department      1    1 

Approved  foreman 

Date 

— 

Chipping  etc. 

Blacksmithing 

Workman's  name 

Order  No. 

- 

Planing 

Boring 

Quantity 

Description  of  work  done 

— 

Drilling 

Tapping 

Turning 

- 

Milling 

Splining 

Operation  performed 


6 

—  - 

— 

7 
I 

% 

K 

— 

8 

2 

— 

% 
~%~ 

9 
3 

— 

y2 

Vz 

— 

lO 

4 

M 
% 

— 

II 

5 

y^ 

12 
6 

Ti 
C 

me 

Pie 
C 

;ce 
) 

H 

ours 

Rate 

Value 

Ser- 
vice 
card 

Man  No. 

Nc 

>.  I 

Machine  Dept. 

a 

Date 

Planing 

Blacksm. 

/ipproveu  loreman 

Boring 

Seating 

Workingman's  name 

Order  No. 

Drilling 

Babitting 

Tapping 

. 

Quantity 

Description  of  work  done 

Punching 

Turning 

Arb.  Assem. 

Milling 

Core         " 

Splining 

Painting 

Chipping 

Grinding 

Filing 

Tinning 

Operation  performed 

Fitting 

6 

7 
I 

y^ 

— 

8 
2 

— 

— 

9 

3 

— 

% 
% 

— 

lO 

4 

— 

II 

5 

y^ 

12 

6 

Time 
O 

Piece 
O 

Ho 

urs 

Rate 

Value 

Card  Form  H.  i.    Machine  Shop  Workman's  Time  Card. 
Light  stone  color. 


5  ms.  X  3  ins. 


THE  COMPLETE  COST-KEEPER. 


321 


Sub-Production  Order 
No. 

To  department          Approved 

D 
Foreman 

Date  of  Order 

Please  execute  the  following  order,  returning  the  order  with  the 
work  to  the  foreman  as  below  who  will  return  this  order  to    the  office 
of  the  superintendent. 

Date  completed. 

. 

i       

1   ■ 

To  be  completed  by  date  as  below              Approved 

Foreman. 

Sub-production  order,  in  duplicate,  thick  and  thin  cards.      6   ins.  x  4 

ins.     Blue. 


Man  No. 

No 

2 

Mach. 

Dept 

•Dl 

Date 

Turning 

Chipping 

Approved  foreman 

Boring 
Milling 

Filing 

Workman's  name 

Order  No. 

Fitting 

Drilling 

Tapping 

Quantity 

Description  of  work  done 

Splining 

Grinding 

Assem.  Strips 

1 

"      Comm. 

Operation  performed 

Guage  Mica 

6 

— 

7 

I 

— 

— 

8 

2 

— 

— 

9 
3 

— 

— 

10 
4 

- 

yi 

- 

II 

5 

— 

'A 

— 

12 
6 

Time 

Piece 
0 

Hours  '    Rate 

1    Service 

Value 

Card  Form  H.2.     Workman's  Time-Card.     5  inches  by  3  inches. 
Light  Stone  color. 


322 


THE  COMPLETE  COST-KEEPER. 


Man  No. 


Winding  Department 

Approved  foreman 


Date 


Workman's  name 


Order  No. 


Quantity 


Description  of  Work  Done. 


Operation  performed 


Vi        8        > 


%     lo       y^ 


Spool  Making 


j  Insulation 

Winding 

1  Taping 

j  Arm  Assemb'g 

Cross   Connect'g 

Banding 

Soldering 

j  Finishing 

% 


% 


% 


% 


% 


% 


Time 

o 


Piece 

o 


Hours. 


Rate 


Value 

I  Service 
Card 


Card  Form  H.  3.     Workman's  Time-Card.    5  ins.  X3  ins.     Grey  Blue 


^ 


H      ^\    H 


H      10 


Man.  No. 

Assembling  Department 

D 

Date 

1  Field  Coil  Test'g 

Approved  foreman 

"       "  finish 'g 

Workman's  name 

Order  No. 

Painting 

Assembling 

Description  of  work  done 

Quantity 

Testing 

Finishing 

Making  boxes 

Boxing 

Dis-assembling 

Operation 

performed 

Re-assembling 

iH 


% 


% 


% 


1-^ 


H\ 


Time 

O 


Piece 

O 


Hours.         Rate 


Value 
/  Ser- 
vice 
Card 


Card  Form,  H.  4.  Workman's  Time-Card;  5  ins.  x  3  ins.;  Salmon  color. 


THE  COMPLETE  COST-KEEPER. 


323 


Man  No. 


General  |    I 

Approved  foreman 


Workman's  name 


Date 


Order 
No. 


Quantity     Description  of  work  done 


Operation  performed 


Sweeping 

Collecting  Scrap 

1  Power  Heat  &  Light 

j  Stores  Dept. 

1  Draught'g  Dept. 

1  Shipping  Dept. 

1 

1 

1 
.    1 

\y^ 


M 


^2 


% 


\% 


\^\ 


% 


%\ 


V. 


Time 

o 


Piece 

o 


Hours. 


Rate 


Value 
Ser- 
vice  j 
Card  1 


Card  "Form  H  5.    Workman's  Time-Card.     sins,  x  3  ins.  Faint  Lavender 

color. 

on  the  card  the  hour  of  beginning  work,  and  the  hour  of  finishing ; 
this  relieves  the  workman  of  the  necessity  of  making  time-calcula- 
tions. The  time,  as  will  be  seen,  may  be  indicated  down  to  the 
quarter-hour,  this  being  considered  a  sufficiently  small  division, 
and  it  is  believed  that  a  smaller  time-division  would  involve  more 
work  than  the  results  would  warrant.  The  cards  are  punched  to 
the  nearest  quarter-hour,  making  the  greatest  possible  error,  seven 
and  one-half  minutes.* 

Since  the  cards  are  returned  to  the  paymaster  from  each  de- 
partment separately,  and  since  all  of  each  workman's  cards  are 
together,  the  time-total  of  each  man's  cards  may  be  readily  checked 
against  the  time-clock  sheet  to  prove  the  accuracy  of  the  time- 
record  made  by  the  workman.  The  cards  are  then  taken  by  the 
paymaster,  who  prices  them  with  rates,  either  time  or  piece-work, 
and  makes  the  cash-value  extensions,  which  are  next  entered  in 
the  pay-roll.  The  cards  are  then  gathered  in  order-number 
bunches,  and  passed  to  the  cost-clerk.  After  his  tabulations  have 
been  made,  as  described  elsewhere,  the  cards  are  sorted  by  depart- 


*  Some  large  concerns  use  five-minute  time  card  divisions. — Compiler. 


324 


THE  COMPLETE  COST-KEEPER. 


merits  to  operations,  all  the  cards  bunched  under  a  given  operation 
being  sub-arranged  by  class  work ;  for  example,  all  the  cards  for 
planing  frames  of  a  given  size,  together,  and  so  on  for  other  ope- 
rations and  other  parts.  The  cards  then  remain  in  the  cabinet 
provided  until  enough  cards  have  accumulated  to  warrant  a  tabu- 
lation of  the  costs  of  individual  operations  on  the  piece-work  cost- 
cards,  as  explained  elsewhere.  The  time-cards  may  then  be  de- 
stroyed, or  preserved  in  cheaper  cabinets  if  desired. 

Card  I.  The  Workman's  Record-Cards.  These  cards  are 
made  by  the  paymaster  and  retained  by  him,  filed  in  alphabetical 
order  in  a  small  cabinet,  an  individual  card  being  made  for  each 
workman  as  soon  as  he  enters  the  employ  of  the  company.  These 
workman's  record  cards  are  arranged  in  two  series,  the  first  giving 
the  names  of  all  the  men  who  have  ever  been  in  the  employ  of  the 
company,  while  the  second  series  records  the  names  of  those  who 
have  left  the  employ  of  the  company.  This  is  useful  for  reference 
in  employing  new  men,  and  when  men  reapply  for  appointment ; 
also  for  the  paymaster  in  fixing  rates  on  the  time-cards,  and  for 
the  superintendent,  as  giving  for  reference  a  complete  history  of 
every  man. 


Name 

No 

. 

Residence 
No. 

Age 

Date  employed 

Dept.  of  operation 

Rate  per  d'> 

Date  transferred 

Date  emp.  ceased 

Cause 

Left-Discharged-Suspended. 

Card  Form  I. 


Workman's  Record  Card.     5  inches  by  3  inches. 
White.     Double  ruling  in  red 


THE  COMPLETE  COST-KEEPER. 


325 


Card  J.  Piece- Work  Cost-Card.  This  is  made  by  the  cost- 
clerk  from  the  time-cards  as  they  accumulate,  and  are  filed  by  ope- 
rations, as  previously  described.  These  cards  are  filed  alphabeti- 
cally by  class,  or  part,  or  machine,  or  description  of  work,  and 
each  division  is  sub-arranged  in  minor  divisions  by  size,  or  kind 
of  work  in  its  class.  None  of  these  cards  is  posted  less  frequently 
than  once  in  four  weeks,  and  the  majority  of  them  once  in  two 
weeks.  The  piece-work  cost-card  shows  the  operation,  the  opera- 
tion-number for  each  operation  performed  in  a  given  department, 
the  order-number,  the  operation-number  of  the  part,  or  the  ma- 
chine-number of  the  machine  on  which  the  work  was  performed, 
with  an  amply  identifying  description  of  the  part  of  machine  or 
work  under  construction.  The  body  of  the  card  gives  the  date 
terminating  the  period  during  which  the  work  recorded  in  the 
tabulation  was  done,  the  number  of  hours  consumed  in  the  per- 
formance of  the  work,  description  of  the  work  performed,  the 
hour-rate,  on  a  day-rate  pay-basis,  the  piece-rate  and  the  total 
cost  of  the  work  on  the  piece-rate  basis ;  with  spaces  for  the  gain 
or  the  loss  of  the  company  in  having  the  work  done,  on  the  basis 
of  actual  performance,  which  may  be  either  a  time-rate  or  a  piece- 


Operation  No. 

Operation  Name 

Department 

Date 

Day  Rate 

cost  per 
100  day 

Rate  per 
100  pes. 

Av.  Number 
per  day. 

Remarks. 

.... 

Estimate  Annual  Cost  $. . 

*rote  :  I  Day=io  hours. 

Card  Form  J.     Piece-work  Cost-Card.     5  ins.  x  3  ins..  White. 


326 


THE  COMPLETE  COST-KEEPER. 


rate  basis.  The  other  space,  headed  "remarks,"  provides  for  spe- 
cial notations  regarding  the  tabulation  record  on  the  line  opposite. 
Card  K.  Permanent  Inventory.  These  cards  are  made  by 
the  cost-clerk  and  retained  in  the  cost-department,  being  filed  in  a 
binder.  The  inventory  is  made  on  five  cards  only,  respectively 
entitled  "rough  stores,"  "partially  worked  stores,"  "factory  sup- 
plies," "obsolete  stores  and  parts,"  and  "finished  stores."  The 
cards  are  started  with  the  inventory  of  each  item  of  each  one  of 
these  groups,  which  is  entered  in  value  in  the  debit  column.  A 
weekly  report  is  received  by  the  cost-department  from  the  book- 
keeper, giving  the  purchases  for  the  week  under  any  of  these 
heads.  The  cost-clerk  from  his  analysis-sheet,  as  described  else- 
where, makes  a  weekly  report  of  the  stores  transferred  from  any 
one  of  these  groups  to  another,  ascertaining  from  the  analysis- 
sheet  the  proper  weekly  posting  to  the  credit  columns,  thus  show- 
ing the  net  reduction  of  the  corresponding  permanent  inventory 
group.  The  balances  of  these  five  sheets  show  the  inventory  value 
of  all  stores,  rough,  partially  worked,  and  finished,  owned  by  the 


Title  of  Permanent  Inventory  Account. 

Date. 

:    Debit. 

Credit. 

Balance. 

Date. 

Debit. 

Credit. 

Balance. 

: 

i 

i 

1 

1 

II      1    1 

1   II     1  II     1 

Permanent  Inventory. 

Card  Form  K.    Permanent  Inventory.     ^%  inches  by  gj^  inches. 
Yellow  and  White. 


THE  COMPLETE  COST-KEEPER. 


327 


! 

Factory  Expenditure  for  week  ending                              190 

Stan.Ord.No. 

Group  : — 

Hours. 

Labor. 

Material. 

j 

' 

j 



1 "" '"I 

' 

Card  Form  L.     Factory  Expenditure  Report.    7%  by  9%  inches.    White. 

company,  the  value  of  the  stock  in  process  being  shown  by  the 
uncompleted  cost-cards. 

Card  L.  This  is  the  Factory .  Expenditure  Report-Card. 
These  cards  are  made  each  week  by  the  cost-clerk,  the  figures  be- 
ing derived  from  his  labor  and  stores  analysis-sheets,  and  are  filed 
in  order  of  date  in  a  binder  in  the  cost-department  for  reference. 
There  are  three  cards  written  each  week,  the  first  showing  the 
expenditures  made  for  permanent  investment,  the  second  the  ex- 
penditures for  indirect  expense  accounts,  and  the  third,  expendi- 
tures on  direct  production.  The  total  of  each  sheet  appears  in  the 
central  space.  In  the  space  to  the  left  the  standing  order-number 
appears,  which  shows  the  classification  of  the  account,  as  describ- 
ed in  the  standing  order  system.  Opposite  each  standing  order 
is  the  specific  title  of  the  account.  In  the  columns  to  the  right 
appear  the  hours  of  labor,  the  value  of  the  labor,  and  the  value 
of  the  material  expended  for  each  of  these  accounts.  The  total 
of  the  labor-column  balances  the  pay-roll.  The  total  of  the  mate- 
rial-column represents  the  net  reduction  each  week  of  the  several 
permanent  inventory  accounts.    These  sheets  furnish  the  manage- 


328 


THE  COMPLETE  COST-KEEPER. 


Form  Mi. 

Check 

No. 

Ref. 

No. 

Names. 

- 

— 

Rate. 

Date 

employment 

began. 

Date 

employment 

ceased. 

Address  or 
remarks. 

no 
III 

112 

113 
114 

115 
116 

120 
121 
122 

130 
132 

134 
135 
136 

152 

I 
2 

3 
4 
5 
6 

7 
8 

9 

ID 
II 
12 
13 
14 
15 
16 

17 

18 

19 
20 
21 
22 

23 

24 

25 
26 

27 
28 

29 
30 



.... 

' 

Sheet  No.  loo-i ....       Covering  period  from  October  15,  '98,  to 

Form  M2. 

- 

Total 

amount 

paid. 

Ref. 
Ko. 

Amount 

of 
'•hargcs 

Amount 

by 

piece. 

Amount 

by 

time. 

1 

V  mount  1 
outside.j 

"^otal' 
time 

Over 
time 

F 

S 

M 

T 

W 

T 

F 

Re- 
marks. 

1 

"! 

I 
2 

3 
4 
5 
6 

7 
8 

9 
10 
II 
12 
13 
14 
15 
16 

17 
18 

19 
20 
21 
22 
23 
24 
25 
26 

27 

23 

29 

30 

An 

k'ut 

br' 

ght 

lor 

wai 

rd 

.... 

•• 

•• 

1 

•• 

-        i 

.    1 

•- 

•• 

1 

1 

1 

1 

•• 

i      1 

.... 

1 

■ 

1 

!i 

i! 

i ' 

•• 

!l 

•• 

•• 

. 

II 

•• 

.... 

- 

1 

;; 

1 

•• 

'!j.. 

c 

iheet 

No. 

TOO 

-I. 

WeeV 

end 

nz 

~o 

cto 

be 

r  2 

I, 

fPg 

S. 

Card  Forms  Mi  and  M2. 


"  Scattergood  "  Pay-RoU.     Mi  is  10  by  12  inches, 
M2  is  6>^  by  12  inches. 


330  THE  COMPLETE  COST-KEEPER. 

ment  with  weekly  information  as  to  the  variation  in  the  indirect 
expense  rate. 

Form  Mi.  Pay-Roll  Sheets.  These  are  preferably  filed  in 
a  binder.  The  form  M2  is  filed  immediately  on  top  of  the  form 
Mi.  This  is  the  ordinary  long  and  short-leafed  form.  The  form 
Mi,  of  the  wider  sheets  contains  the  record  of  the  numbers,  names, 
and  rates  of  the  workmen,  together  with  the  dates  of  their  enter- 
ing and  leaving  the  employ  of  the  company:  Form  M2,  contains 
the  daily  time-work  or  piece-work  record,  together  with  the  ex- 
tensions in  total  for  the  week.  The  object  in  using  a  pay-roll  in 
this  form  is  to  avoid  the  frequent  re-writing  of  the  names  that  is 
necessary  in  pay-rolls  of  other  forms ;  the  narrow  sheets  comprise 
all  financial  details  of  the  pay-roll  from  week  to  week,  while  the 
wide  sheets  record  all  the  facts  relating  to  the  workman's  per- 
sonality.    This  pay-roll  is  kept  by  the  paymaster. 

Card  N.  The  Requisition-For-Purchase  Card.  These  cards 
may  originate  with  any  foreman,  but  rtiore  frequently  originate 
with  the  storekeeper,  stores-ledger  clerk,  or  superintendent,  and, 
as  the  title  indicates,  are  forms  issued  for  requisitions  for  purchases 
of  stores  of  any  description  whatever.  The  cards  go  first  to  the 
stores-ledger  clerk,  who  passes  them,  if  the  purchase  required  is 
consistent  with  the  maximum  or  minimum  of  stores  which  he  has 
been  directed  to  keep  on  hand,  to  the  superintendent  for  approval 
of  the  purchase;  then  the  cards  go  to  the  purchasing  clerk,  who 
makes  out  the  purchase  order,  indorsing  it  with  the  number  of 
the  purchase  ordered,  and  if,  in  his  judgment,  the  goods  cannot 
be  obtained  by  the  date  required,  so  indicates  it,  returning  the  card 
to  the  stores-ledger  clerk.  The  stores-ledger  clerk  files  this  requi- 
sition for  purchases  in  the  card-cabinet  with  the  stores-ledger 
cards,  the  requisition  being  placed  immediately  behind  the  related 
stores-ledger  card.  Each  card  shows  the  date  of  the  requisition, 
the  department  for  which  required,  the  quantity  and  the  descrip- 
tion of  the  stores  required,  and  the  purpose  for  which  required; 
that  is,  whether  for  the  replenishing  of  the  stores,  or  for  some 
specific  production-order;  the  date  of  delivery  desired,  and  the 
purchase  order-number.  The  purchasing  agent  also  stamps  across 
the  face  of  the  card,  "purchase-order  given,*'  with  the  date  of  giv- 
ing. By  filing  these  cards  with  the  stores-ledger  cards,  as  just 
shown,  it  becomes  possible  to  immediately  ascertain  from  the 


THE  COMPLETE  COST-KEEPER. 


331 


Purchase  order 

Department 

Date 

Quantity 

Description 

Purpose 

Wanted  by  what  date 

Required  by 

Approved 

Put  only  one  entry  on  a  card  and  return  promptly  to  oflBce 

Requisition  for  purchases. 

Card  Form  N.     Purchase-Order.     6x4  inches.     Blue. 


Stores-ledger  clerk  precisely  what  orders  are  outstanding  for  any 
particular  article.  These  cards  remain  in  the  stores-ledger  cabinet 
until  the  material-received  card  shows  the  delivery  of  the  goods, 
this  material-received  card  being  checked  by  the  requisition-for- 
purchase  card.  The  requisition-for-purchase  card  is  filed  in  cheap 
cabinfets  by  purchase  order-number,  and  after  a  period  of  three 
or  four  months  may  be  destroyed,  as  probability  of  desire  for  fur- 
ther reference  to  these  cards  is  very  small. 

Card  O.  The  Material-Received  Card.  These  cards  take  the 
place  of  all  other  records  of  stores  received  by  the  receiving  clerk. 
All  stores  of  any  nature  whatever  entering  the  factory  are  re- 
corded on  these  cards  by  the  receiving  derk,  who  is  merely  an 
assistant  to  the  storekeeper,  and  properly  located  in  the  stores- 
department.  All  stores  immediately  pass  into  the  charge  of  the 
storekeeper,  unless  he  directs  otherwise.  Material-received  cards 
pass  through  the  hands  of  the  storekeeper  to  the  stores-ledger 
clerk,  who  first  checks  them  against  the  purchase  requisitions  and 
then  uses  them  to  check  the  bills  from  the  seller.  The  material- 
received  cards  are  then  filed  at  the  desk  of  the  stores-ledger  clerk 


332 


THE  COMPLETE  COST-KEEPER. 


Required  for 

Department                               Foreman 

D 

Date 

190 

Quantity. 

Articles. 

On  Pure.  Order 

Remarks. 

Received  by 

• 

Put  only  one  entry  on  a  card  and  return  promptly  to  OfiBce. 

Material-Received  Card.                                         Form  19. 

Card  Form  O.     Material-Received.     6x4  ins.  White. 


in  order  of  date,  and  thus  constitute  a  record  of  all  goods  received. 

Card  P.  The  Material-Delieverd  Card.  These  cards  are 
made  by  any  of  the  workmen  who  have  occasion  to  draw  stores 
or  supplies,  and,  after  approval  by  the  foreman,  go  to  the  store- 
keeper, who  delivers  the  required  material  and  retains  the  card. 
The  cards  go  from  the  storekeeper  to  the  stores-ledger  clerk,  who 
makes  a  corresponding  entry  in  the  stores-ledger  cards,  deducting 
amounts  delivered,  and  at  the  same  time  extending  the  prices  of 
the  material-delivered  cards ;  he  arranges  the  cards  in  order-num- 
ber sequence,  and  sends  them  to  the  cost-clerk,  who  enters  them 
on  the  analysis-sheet,  as  elsewhere  explained. 

Card  Q.  Material-Returned  Card.  These  cards  are  handled 
in  precisely  the  same  manner  as  card  B,  excepting  that  they  record 
credits  of  material  to  production-orders,  instead  of  charges.  These 
cards  are  filled  by  the  storekeeper,  who  hands  them  to  the  man 
returning  the  stores,  the  man  in  turn  passes  these  slips  to  his  fore- 
man, by  whom  they  are  sent  to  the  stores-ledger  clerk,  and  after 
entry  in  the  stores-ledger,  are  filed  by  the  stores-ledger  clerk. 

Cards  Ri  and2,    Stores-Ledger  Cards.    These  cards  are  made 


THE  COMPLETE  COST-KEEPER. 


335 


out  by  the  stores-ledger  clerk  and  retained  by  him,  being  filed  in 
the  stores-ledger  cabinet  arranged  by  class  of  stores,  all  the  stores 
in  one  class  being  sub-arranged  by  the  dimensions  of  the  articles 
recorded.  These  cards  receive  all  the  records  of  the  material- 
received  cards,  material-delivered  cards,  and  material-returned, 
cards,  and  consequently  show  the  balance  of  stores  on  hand  at 
any  time.  A  notation  in  the  upper  right-hand  corner  of  the  card 
provides  for  records  of  the  maximum  and  minimum  quantities 
of  the  various  items  which  have  been  determined  upon  as  being 
desirable  to  maintain.  It  is  the  duty  of  the  stores-ledger  clerk 
to  notify  the  superintendent  when  either  the  high  or  low  limit 
is  closely  approached,  so  as  to  avoid  overproduction  or  overpur- 
chase,  and  also  to  avoid  depletion  of  the  stores,  and  consequent 
delays  in  filling  orders. 


Order  No. 


To  Department 


D 
Foreman 


Date 


Quantity        Description 


Value 


Delivered 


Received  by 


Put  only  one  entry  on  a  card  and  return  promptly  to  o£Bce. 


Card-Form  P.  Material-Delivered,  6x4  ins.     Buff. 


On  pages  336-340  following  are  given  forms  for  the  Standing 
Order  Cost- Sheet  and  Department  Cost-Sheet,  the  application  o£ 
which  is  discussed  on  page  303. 


334 


THE  COMPLETE  COST-KEEPER. 


Order  No. 


From  Department 


D 
Foreman 


Date 


Quantity        Description 


Value. 


Delivered  by 


Received  by 


Put  only  one  entry  on  a  card  and  return  promptly  to  office. 


Card-Form  Q,  Material-Returned,  6x4  ins.,  Terra-Cotta. 


List  of  Forms  For  a  Small  Establishment. 

For  a  small  plant,  employing  say  from  15  to  40  men,  desiring 
to  introduce  a  suitable  system  for  obtaining  and  recording  the 
most  essential  current  facts  regarding  production,  the  following 
cards  and  records  are  recommended,  selected  from  the  forms  pre- 
viously described,  viz:  Time  Cards,  Hi,  Pay-Roil  Sheets,  forms 
Mi  and  M2,  Purchase  Requisition  N,  Material-Received  Card  O, 
Material-Delivered  Card  P,  Material-Returned  Card  Q,  Stores- 
Ledger  Card  Ri,  and  the  Cost-Card  S, 


THE  COMPLETE  COST-KEEPER. 


335 


j  No.  or  size 

i 

Article 

Unit 

Max 

1 

Min 

Date  Rec'd    Price 

1 

Date 

Del'd 

Date 

Del'd 

Date 

Del'd 

Balance 

Value  Bal. 

1 



. 

1             1 

i             1 

1 

1 

1 

1 

1 

1 

1 

1 

i 

1 

Card-Form  Ri.  Store's  Ledger  both  sides  printed  alike,  6x4  ins.  White. 


No.  or  size 

Article 

Unit 

Max. 
Min. 

Received 

Delivered 

Bal. 

Vat.  Bal. 

.... 

_ 

' 

. 

'.'.'.'. 

.... 

.... 

'. 

.... 

_^ 

. . . . 

•    •! 

... 

Card-Form  R2,  Stores-Ledger  Card,  6x4  inches.   White. 


336 


THE  COMPLETE  COST-KEEPER. 


Standing  Acc't  No.     Title 

Explanation 

....1 
i 

lUpt. 

)rd. 

General                         | 

Department.                                           | 

Material 

Hrs. 

Dir. 
Labor 

Fac. 
Exp. 

Material 

Hrs. 

Dir. 
Labor. 

Fac. 
Exp. 

. 

1 

! 

■■■■| 

....| 

■■■■| 

1 

1 

.... 

\ 

" '  \ 

'■''  \ 

.... 

1 

1 

1 

Standing  Order  Cost-Sheet,  2i\%.  ins.  x  lo  ins. 


THE  COMPLETE  COST-KEEPER. 


337 


Department 

Date 


Direct  Labor 


Hours 


Propor.    Gen.Adminis.    Charges 


Department  Cost  Sheet. 


338 


THE  COMPLETE  COST-KEEPER. 


- 

Supt. 

= 

Fore- 
men 



Other  Ind. 
Labor. 

= 

Power. 

Heat 

Light 

= 

Factory 
Supp. 

= 



^ 

.... 

■ 

! 

1 

< 

i 

i 

1 

1 

' 

! 

' 

1 

Department  Cost  Sheet. 


THE  COMPLETE  COST-KEEPER. 


339 


Repairs.                         1 

= 

Depreciation.                    j 

= 

To 
Building^. 

To 
Machinery 

To  Small 
Tools. 

To 
Building:s. 

To 
Fixtures. 

To 
Machinery 

—         .   .Z. 

1 

] 

t  ■■■::; 

i 



1 

1 

, 

;    ■    ■  i    1 

; 

. 

.  .    .  . 

' 

! 

j 

1    

• 

1 

' 



•• 

Department  Cost  Sheet. 


340  THE   COMPLETE   COST-KEEPER. 


Departm 
1  Dates 

tc 

[Constant 

1 
1 

■ 

' 

= 

i 

= 

1 

1 

1 

1 

' 

1 

i 

1 

! 

Department  Cost  Sheet  24J4  ins.  long  x  10  ins.  high. 


'THE  COMPLETE  COST-KEEPER.  341 

Graphic  Exhibits. 

The  Graphic  Exhibit  takes  the  form  of  a  line  varying  direc- 
tion ;  for  convenience  this  line  is  usually  laid  down  on  a  sheet  of 
engineer's  quadrille  ruled  paper,  the  upper  or  lower  line  being 
filled  with  time-divisions  or  dates,  while  the  right  and  left  vertical 
lines  of  spaces  are  used  to  represent  value-divisions.  The  time- 
divisions  may  represent  hours,  days,  weeks,  months,  or  years, 
and  the  value-divisions  may  represent  mills,  cents,  or  dollars, 
according  to  the  nature  of  the  proceeding,  production,  or  expendi- 
ture to  be  delineated.  Again  the  right  and  left-hand  vertical  col- 
umns may  be  assumed  to  represent  various  divisions  of  weight, 
as  might  be  thought  convenient  for  a  graphic  exhibit  of  coal-con- 
sumption. 

Having  thus  assumed  value  locations  for  the  two  directing 
elements  of  the  graphic  delineation,  it  is  a  perfectly  simple  mat- 
ter to  lay  down  the  line,  by  placing  the  mark  in  the  left-hand  time 
column  of  squares  at  the  elevation  indicated  by  the  value,  cost, 
or  weight,  of  the  thing  under  consideration ;  in  the  next  column 
of  time-spaces  the  volume  mark  is  placed  at  the  proper  elevation 
for  that  date ;  if  this  mark  is  above  the  first  mark  made  it  shows 
a  variation  by  increase,  if  below,  it  shows  a  variation  by  reduction, 
while  if  at  the  same  elevation  as  the  first  mark  made,  it  shows 
that  there  is  no  change  from  the  volume  or  value  record  denoted 
by  the  first  entry. 

Taking  an  example  of  the  simplest  form  for  an  illustration, 
let  it  be  required  to  construct  a  graphic  exhibit  of  daily  factory 
fuel  consumption  for  the  first  week  of  January,  1899,  where  coal 
only  is  considered.  In  this  case  the  lower  line  of  squares  is  assum- 
ed as  representing  the  required  time-divisions  of  days,  while  the 
left  vertical  column  of  squares  represents  hundreds  of  pounds 
of  coal. 

The  consumption  of  coal  January  i,  was,  as  shown  by  the 
fuel  record,  1,250  pounds.  Therefore  the  first  point  in  the  line 
is  in  the  January  i,  vertical  column,  and  in  the  middle  between 
the  1,200  and  1,300  pounds,  horizontal  divisions,  January  2,  with 
more  men  in  work,  1,600  pounds  of  coal  were  burned,  hence  the 
Avork  for  that  date  is  in  the  middle  of  the  1,600  pounds  space. 
January  3  was  cold,  and  1,750  pounds  of  coal  were  used.  January 
4,  nearly  the  same,  1,700  pounds.     January  5,  the  weather  was 


342 


THE  COMPLETE  COST-KEEPER. 


1 

2 

3 

4 

6 

6 

7 

M. 

T. 

W. 

TH. 

F. 

SAT. 

SUN 

BOILER   FURNACES 

+  -l--l--f+4"t-    FORGE  FURNACES 
'■—    GAS  FURNACES 


Graphic  Exhibit  of  Fuel  Consumption. 


THE  COMPLETE  COST-KEEPER.  343 

still  cold,  and  again  1,700  pounds  were  burned.  January  6,  Sat- 
urday, was  a  short  day,  and  was  warmer,  and  the  consumption 
dropped  to  1,550  pounds.  Sunday,  the  8th,  only  steam  for  heat- 
ing was  used,  and  the  fuel  consumption  fell  to  900  pounds. 

Suppose  now,  that  natural  gas  also  is  used  in  the  factory, 
and  that  it  is  desired  to  show  by  graphic  delineation,  on  the  same 
card,  both  the  coal  and  gas  consumption.  In  this  case  the  left- 
hand  vertical  column  may  stand  filled  in  black  figures  for  hun- 
dreds of  pounds  of  coal,  and  the  right-hand  vertical  column  may 
be  filled  in  in  red,  for  hundreds  of  feet  natural  gas  burned.  Say 
ihat  on  Monday  700  feet  of  gas  were  burned :  this  makes  the  red 
gas-consumption  line  begin  in  the  7th  space,  January  i.  This  line 
is  dotted  to  represent  red.  January  2,  900  cubic  feet,  January  3, 
1,000;  January  4,  900;  January  5,  1,000;  and  on  Saturday, 
January  6,  only  600  feet,  and  on  Sunday,  January  7,  only  200 
cubic  feet  of  gas  were  burned,  all  as  is  shown  graphically  by  the 
dotted  line  on  the  exhibit  card.  Once  more,  suppose  that  drop 
forgings  form  a  part  of  the  output,  and  that  the  coal  used  in  the 
drop-room  heating  is  to  be  added  to  the  record  by  a  blue  line, 
which  is  here  indicated  by  a  succession  of  crosses,  taking  the 
original  hundred  weights  left-hand  column  for  the  pounds-of- 
work  heating  coal  burned.  January  i,  only  one  hammerman  was 
at  work,  and  he  burned  300  pounds  of  coal.  January  2,  there 
were  more  fires  in  the  drop-shop,  and  1,100  pounds  of  coal  were 
burned  in  the  muffles.  January  3,  1,000  pounds;  January  4,  1,050 
pounds;  January  5,  1,100  pounds;  January  6,  800  pounds;  and 
none  on  Sunday,  January  7. 

From  this  simple  illustration  it  readily  will  be  inferred  that 
any  detail  of  business  expenditure  may  be  graphically  exhibited 
by  a  line  located  by  dates  and  expenditures,  and  also  that  the 
relative  fluctuations  of  two  or  more  intimately  related  accounts 
may  be  shown  together  on  the  same  card,  so  as  to  show  compara- 
tive performance  in  a  very  striking  manner.  Hence  it  is  fre- 
quently very  helpful  to  a  manufacturer  or  factory  official  to  have 
some  of  the  important  accounts  graphically  presented,  so  that 
ocular  comparisons  can  be  made  of  the  various  changes  in  expense 
accounts,  sales,  costs,  etc.  For  instance,  tables  may  be  made  like 
the  exhibit  shown,  giving  the  variations  from  week  to  week,  or 
from  month  to  month,  in  expenditures  for  permanent  investment. 


344  THE  COMPLETE  COST-KEEPER, 

in  indirect  expenses,  and  in  direct,  or  factory  costs  of  production. 
The  total  direct  labor  expenditure  may  thus  be  directly  compared 
with  the  aggregate  number  of  production  labor  hours,  thus  giving 
an  ocular  exhibit  of  increase  or  decrease  in  the  productive  value 
of  the  labor.  This  again  may  be  compared  on  the  same  graphic 
exhibit  with  the  current  indirect  expense  and  total  costs  of  pro- 
duction, and  so  show  whether  a  higher  price  paid  for  the  same 
number  of  hours  of  direct  labor  has  resulted  in  increased  pro- 
duction for  the  same  indirect  expense,  with  the  favorable  result 
of  a  reduction  of  total  costs.  Graphic  tables  properly  made  are 
of  the  highest  value,  as  they  give  information  enabling  the  manu- 
facturer to  intelligently  modify  his  policy  in  many  lines,  and  to 
deal  promptly  with  problems  in  the  administration  of  the  business, 
because  things  are  made  at  once  apparent  by  the  graphic  delinea- 
tion which  could  not  be  discovered  without  much  labor,  by  scan- 
ning ordinary  tabulations  of  figures,  which  may  record  highly 
significant  facts  so  unobtrusively  that  their  real  import  is  not  rea- 
dily grasped.  In  the  graphic  exhibit  the  sharp  rise  or  fall  of  a 
line  attracts  immediate  attention,  and  so  does  the  divergence  of 
the  lines  of  two  related  records  which  should  converge  to  make 
money,  or  the  broken  form  of  a  line  which  should  show  a  uniform 
deflection  upward  or  downward,  if  a  recently  adopted  policy  were 
producing  the  results  expected. 

Graphic  tables  show  in  a  striking  manner  all  existing  rela- 
tions between  the  weight  of  raw  material,  the  value  of  raw  mate- 
rial, the  weight  of  finished  product,  the  value  of  finished  product, 
and  the  hours  of  direct  labor,  and  the  cost  of  direct  labor.  They 
also  compel  attention  to  be  given  to  indirect  expenses,  which  might 
otherwise  fail  to  be  noted  in  important  connections,  and  so  give 
the  general  manager  highly  important  indications  as  to  the  cor- 
rectness or  incorrectness  of  his  policy  on  certain  lines,  and  as  to 
the  efficiency  of  those  subordinates  upon  whom  he  is  compelled  to 
rely. 


THE  CARD  SYSTEM  OF  ACCOUNTING. 


A  general  consideration  of  the  economies  and  advantages  aris* 
ing  from  the  use  of  cards  instead  of  books. 
By  Roger  A.  Simonson. 

The  information  contained  in  this  chapter  upon  the  card 
system  is  wholly  the  result  of  experience  upon  the  part  of  manu- 
facturers who  have  used  card  systems  and  thoroughly  tested  their 
practical  value.  The  paragraphs  which  follow  are,  therefor^ 
rather  a  collective  narrative  of  testimony  than  an  essay  upon  the 
subject  in  hand.  And  the  manufacturer  who  has  perused  the 
volume  thus  far  will  readily  agree  that  the  concentrated  rays  of 
experience  throw  a  stronger  light  upon  this  topic  than  the  arti- 
ficial glow  of  theory. 

Unlimited  Expansion. 

The  progressive  cost  accounting  of  a  manufacturing  plant 
necessitates  certain  factors  which  are  essential  to  the  mainte- 
nance and  completion  of  such  records.  The  card  system  em- 
braces these  essential  features  by  enabling  the  manufacturer  to 
readjust  his  items  of  cost  and  technical  accounts  to  fit  the  succes- 
sive changes  made  necessary  by  the  developing  features  of  his 
business.  In  a  growing  manufacturing  establishment,  any  book 
system  would  become  inadequate  owing  to  the  impossibility  of 
eliminating  dead  material  and  perpetuating  growth  by  the  inser- 
tion of  live  matter,  without  limit,  in  perfect  location. 
Unity  of  Item  Entry. 

A  progressive  record  of  a  manufactured  article,  demands  a. 
series  of  unit  entries  capable  of  growth  and  interpolation.  This  is- 
possible  only  by  utilizing  a  system  which  provides  for  a  unity  of 
item  entries.  Each  card  record  is  unique  in  itself,  a  perfect  unit^ 
yet  capable  of  fitting  immediately  into  its  required  place  in  the 
system  as  a  whole. 

Collective  Value. 

This  unity  of  item  entry  becomes  invaluable  for  the  purpose 
of  collecting,  collating  and  correlating  details  of  cost  both  for  pur- 


346  THE  COMPLETE  COST-KEEPER. 

poses  of  summarizing  and  departmental  analysis.  In  the  foregoing 
pages,  the  inception,  growth  and  maturity  of  the  finished  product 
are  completely  described,  affording  a  fitting  illustration  of  the 
character  of  records  necessary  to  properly  clothe  the  information 
essential  to  each  progressive  stage  of  manufacturing  development. 
Take  for  example  the  construction  of  a  dynamo ;  each  part  of  this 
mechanism  has  its  cost  properly  inscribed  upon  a  history  card, 
and  the  total  sum  of  these  cards  when  collected  forms  a  complete 
•  descriptive  cost  of  the  dynamo.  Thus  the  card  system  by  its  unity 
of  item  entry  comprises  when  complete  a  collection  of  units  repre- 
senting the  desired  total  cost. 

Collation  of  Typical  Costs. 
But  it  is  also  possible  to  collate  by  means  of  cards  holding  a 
xorresponding  relationship  to  a  number  of  machines,  a  summary 
•of  information  which  becomes  invaluable  as  determining  the  aver- 
age cost  of  the  corresponding  component  parts  of  the  totality  of 
such  machines  manufactured  within  a  given  time.  For  example 
an  electrical  plant  maintains  a  card  system  of  cost  accounting  cov- 
ering a  period  of  years.  Each  collection  or  group  of  cards  repre- 
sents the  constructive  cost  of  an  entire  dynamo.  But  each  type  of 
cards  has  its  own  identity,  because  the  totality  of  cards  comprising 
a  typical  class,  determines  the  average  cost  of  production  of  one 
complete  line  of  component  parts  during  the  entire  period  of  manu- 
facture. 

Cross  Reference. 

'  Besides  the  collection  of  the  unit  cost  items,  and  the  collation 
of  component  parts  statistics,  it  is  also  made  possible,  by  means 
of  the  card  system,  to  correlate  the  progressive  costs  of  parts 
manufactured  so  as  to  focus  the  entire  available  information  upon 
a  given  problem  of  present  manufacturing  costs.  This  correlation 
of  cost  statistics  is  accomplished  by  means  of  a  cross  reference 
system  by  which  a  card  referring  to  a  specific  production  to-day, 
identifies  by  cross  reference  a  similar  transaction  prior  by  some 
months  or  years  and  relative  to  the  manufacture  of  an  article  dif- 
fering in  character.  The  inexpansible  nature  of  any  bound  recep- 
tacle for  the  inscription  of  costs,  such  as  a  blank  book,  would  at 
once  destroy  the  ability  of  the  manufacturer  to  thus  keep  in  vital 
touch  with  his  records  of  production  from  each  successive  period. 


THE  COMPLETE  COST-KEEPER.  347. 

Let  us  illustrate  by  noting  the  experience  of  a  manufacturer  who 
improved  his  process  of  electro  plating  by  discovering  a  new  fcw- 
mula  for  the  acid  solution.  Upon  his  cost  card  for  the  articles 
manufactured,  he  enters  an  item  for  silver  plating  mountings  and 
makes  a  cross  reference,  showing  the  comparative  costs  of  the  lot 
manufactured  by  means  of  the  new  process  in  comparison  with 
that  produced  by  the  former  method.  The  result  of  each  succes- 
sive process  or  discovery  is  thus  connected  with  the  detailed  cost 
of  the  product  by  the  wireless  telegraphy  of  cross  reference,  af- 
fording the  superintendent  instant  access  to  records  of  all  previous 
experiments  and  experiences  for  his  guidance  in  estimating  future 
costs. 

Current  Summaries. 

A  manufacturer  recently  expressed  the  opinion  that  the  most 
valuable  feature  of  the  card  system  as  distinguished  from  other 
methods  of  recording  costs  consists  in  the  ability  to  tabulate  per 
diem  current  summaries  of  the  cost  and  condition  of  goods  in  pro- 
gress of  manufacture.  The  fact  that  each  new  entry  takes  its 
proper  place  in  exact  location  in  the  system,  enables  the  super- 
intendent to  maintain  current  summaries  correct  and  up  to  date, 
with  less  labor  than  is  required  to  keep  blank  books  in  unsatisfac- 
tory shape.  The  reason  for  this  is  that  new  iterhs  gravitate  to  their 
proper  location  instead  of  being  interspersed  with  records  irrele- 
vant in  character  to  the  synopsis  of  cost  desired.  That  is  to  say, 
a  number  of  cost  cards  can  be  distributed  in  the  cabinet,  each  being 
assigned  to  its  place  in  the  group  describing  the  progressive  cost 
of  the  article  whose  part  it  represents.  Each  day  by  looking  over 
all  the  cards  which  have  thus  far  been  entered  the  foreman  of  a 
rom  is  enabled  to  make  up  a  current  summary  of  work.  And  the 
total  of  these  summaries  judiciously  tabulated  will  give  the  super- 
intendent live  statistics  and  current  costs.  The  maintenance  of  reli- 
able balances  is  thus  greatly  facilitated  by  the  card  system  which 
from  its  historical  character  presents  a  cumulative  as  well  as  a  per- 
petual value. 

Perpetual  Inventory, 

From  these  current  summaries  can  be  obtained  a  perpetual 
inventory,  which  it  is  usually  desirable  to  maintain  on  a  separate 
svstem  of  cards  known  as  the  stock  record.     The  difficulties  in- 


348  THE  COMPLETE  COST-KEEPER. 

volved  in  keeping  a  stock  record  upon  books  need  not  be  explained 
to  anyone  who  has  tried  this  method,  and  what  factory  accountant 
has  not?  The  varying  kinds  and  conditions  of  stock,  as  well  as 
the  great  latitude  of  the  quantity  entries  make  imperative  the  use 
of  an  elastic  system,  from  which  the  dead  matter  can  be  expunged 
at  will  and  where  the  record  of  a  particular  kind  of  stock  is  afford- 
ed the  opportunity  of  unlimited  growth.  The  fact  that  a  current 
inventory  has  of  recent  years  become  almost  universal  among 
manufacturers,  is  due  in  some  degree  to  the  facility  afforded  by 
the  card  system  for  proper  inventory  record. 

Departmental  Analysis. 

The  principle  of  individuality  of  item  entry  when  maintained 
upon  a  card  makes  possible  a  rearrangement  of  costs  for  special 
and  departmental  analyses.  A  problem  which  presents  itself  to  the 
manufacturer  is  how  to  centralize  the  operations  of  various 
factory  departments,  analyzing  the  cost  statistics  of  each  depart- 
ment and  collating  them  so  as  to  unify  the  information  for  future 
occasions.  If  the  records  thus  collated  are  continued  in  bound 
volumes,  such  comparison  of  departmental  records  becomes  im- 
possible, whereas  by  means  of  the  card  system  the  collated  in- 
formation is  ever  at  hand.  The  value  of  this  facility  for  analyz- 
ing the  records  of  each  department  is  at  once  apparent.  A  com- 
parison of  the  records  of  costs  of  the  several  departments  reveals 
points  of  value  to  the  general  superintendent.  The  amounts 
charged  to  labor,  material  or  the  operation  of  special  machinery 
in  a  given  department  can  be  properly  judged  as  to  their  economy 
mainly  by  comparison  with  other  departments.  Not  only  can 
one  department  be  compared  with  another,  but  an  authentic  card 
system  will  reveal  the  scale  of  costs  throughout  successive  years. 
Should  the  cost  of  identical  transactions  in  a  special  department 
vary  greatly,  a  cause  is  at  once  looked  for.  It  is  possible  for  the 
total  costs  of  operating  a  plant  to  continue  with  comparative  uni- 
formity, whereas  there  may  be  descrepancies  in  the  expense  of 
conducting  the  various  departments. 

Individual  Reference. 

The  same  facility  afforded  the  manufacturer  to  subdivide 
and  rearrange  the  card  system  at  will,  makes  possible  the  consul- 
tation of  individual  accounts  of  a  particular  transaction  dissociated 


THE  COMPLETE  COST-KEEPER.  349 

from  collateral  records.  The  factory  superintendent  is  obliged 
many  times  daily  to  send  for  a  completed  cost,  and  if  this  cost 
record  is  contained  in  a  bound  volume,  the  cost  clerk  and  all  work- 
men interested  in  the  progressive  account  which  is  daily  inscribed 
in  this,  volume,  are  kept  waiting  while  the  superintendent  runs 
through  the  book  from  place  to  place  and  determines  the  cost 
essential  to  him  at  that  time.  By  means  of  a  card  system, 
however,  he  can  abstract  the  cost  record  of  any  completed  product 
from  the  entire  system  without  disturbing  any  of  the  clerical  force, 
or  any  of  the  processes  interested  in  the  manufacture  of  goods 
whose  record  is  shown  on  the  cards  required. 

Self  Indexing. 

His  access  to  the  card  system  is  also  direct  to  the  desired  in- 
formation, that  is  to  say,  the  cards  are  self  indexing  and  require 
no  separate  set  of  records  to  instantly  locate  he  desired  items. 

Transposition. 

The  transposition  of  a  progressive  record  is  also  an  essential 
feature  made  possible  by  the  use  of  cards.  An  inscribed  card 
follows  the  part  which  it  represents  through  the  successive  stages 
of  manufacture,  and  the  relative  location  of  the  card  in  the  cabinet 
at  any  time  determines  at  a  glance  the  present  condition  of  the  part 
being  made  in  the  factory.  It  follows  that  a  record  which  must 
of  necessity  be  intermittent  in  its  character  can  be  properly  main- 
tained only  upon  cards,  a  given  amount  of  time  and  a  certain 
machine  being  utilized  at  one  period,  and  additional  cost  as  rep- 
resented by  the  same  process  added  later,  after  the  part  has  gone 
through  other  stages  of  manufacture. 

Saves    "Overtime     Money." 

The  intrinsic  economy  secured  by  the  use  of  cards  is  demon- 
strated by  the  testimony  of  a  successful  manufacturer  who  says 
that  the  entire  cost  of  his  card  system  has  been  more  than  compen- 
sated during  the  year  just  closed  by  the  sum  formerly  expended 
as  "overtime  money"  made  necessary  by  a  cumbrous  system.  The 
payment  of  "overtime  money"  to  clerical  help  is  necessitated 
largely  on  account  of  methods  which  clog  and  retard  the  prompt 
entry  of  current  transactions  during  a  time  of  special  rush.  Every 
manufacturing  plant  has  its  periods  of  intense  business  pressure 


350  THE  COMPLETE  COST-KEEPER. 

when  the  capacity  of  the  works  is  taxed  night  and  day  and  even 
then  is  far  behind  orders.  In  such  cases  the  use  of  an  inexpan- 
sible,  arbitrary  method  of  cost  accounting  is  simply  disastrous 
m  its  consequences,  whereas  by  means  of  a  card  system  every  pro- 
cess is  immediately  tabulated  and  formulates  at  once  a  clean  and  up 
to  date  record,  complete  in  itself  when  the  whistle  sounds  for  the 
shutting  down  of  the  works  or  the  shift  of  employees. 
No  Duplicate  Labor. 

A  growing  record  of  costs,  if  maintained  upon  books,  pre- 
sents a  continual  opportunity  for  duplication  of  items  which  have 
become  separated  by  interpolating  current  matter.  This  dupli- 
cation not  only  results  in  confusion  but  entails  no  inconsiderable 
loss  of  labor  as  well.  By  means  of  the  card  system,  however, 
such  duplication  becomes  imposssible,  for  the  card  system  being 
elastic  and  separable  in  its  parts,  dovetails  with  other  forms  and 
enables  the  manufacturer  to  readjust  to  meet  new  conditions. 
Numeric  System. 

The  relationship  of  numerals  to  cards  is  in  itself  an  interest- 
ing subject.  Briefly,  each  consecutive  number  is  a  cumulation 
of  units,  and  the  corresponding  card  system  represents  a  like  cumu- 
lation, each  of  which,  complete  in  itself,  is  represented  by  a  card. 
By  means  of  the  terminal  number  tab  card  system  (a  series  of 
projections  varying  in  successive  positions  from  left  to  right 
across  the  top  of  the  cards)  a  tab  is  made  to  designate  the  unit  or 
terminal  position  of  the  number.  Thus  any  number  can  be  in- 
stantly located  without  fingering  the  cards.  If  number  505  is 
,desired,  it  must  necessarily  be  found  on  a  card  carrying  a  tab  in 
the  fifth  position ;  should  the  number  be  509  the  tab  appears  at 
once  in  the  ninth  position,  affording  another  illustration  of  the 
principle  that  a  card  system  is  self -finding. 

Classification. 

The  tab  card  system  is  used  for  many  other  purposes  in 
classifying  cards.  In  order  to  separate  quickly  a  special  class  of 
records  from  the  entire  system,  the  tabs  are  punched,  so  that  by 
running  a  rod  through  a  parallel  row  of  tabs  any  particular  type 
of  records  may  be  extracted  in  toto  without  fingering  each  individ- 
ual card.  When  used  in  combination  with  colors,  tab  cards 
afford  a  wide  range  of  classification  centralized  in  one  compass. 
One  sysem  in  use  combines  ten  colors  of  cards  with  twelve  relative 


THE  COMPLETE  COST-KEEPER.  :35I 

positions  of  tabs,  thus  providing  for  a  possible  tabolation  of  one: 
hundred  classes  of  detailed  costs  in  one  compass.  The  tabs  are^ 
frequently  used  to  designate  dates  of  completion,  and  when  thus- 
arranged,  combine  in  one  list  both  chronologic  and  alphabetic- 
arrangement.  This  feature  is  often  the  means  of  saving  half  the 
labor,  as  when  books  are  used,  it  becomes  necessary  to  maintain 
two  separate  lists,  one  by  name  and  the  other  by  date.  With 
blank  books  too,  if  a  record  must  be  made  accessible  from  several- 
standpoints,  the  entries  must  be  made  in  as  many  different  places^ 
pages  or  volumes,  as  the  case  may  be,  while  with  the  card  system 
the  entry  can  be  inscribed  and  so  arranged  that  the  color  will  rep- 
resent one  classification,  the  position  of  the  tab  another,  and  the 
relative  location  of  the  card  in  the  cabinet  a  third.  In  numerous 
instances  this  feature  has  enabled  manufacturers  to  maintain  in 
one  complete  record  that  which  otherwise  must  have  been  trans- 
cribed twice,  thrice  or  even  more  times  if  preserved  in  book  form. 

Mechanical  Features. 

Another  economical  feature  of  the  card  system,  rendering  it 
invaluable  as  a  factor  in  cost  accounting,  lies  in  the  fact  that  a 
card  may  be  made  with  one  or  more  detachable  parts  in  the  form 
of  coupons.  In  authorizing  the  constructing  of  a  machine,  the 
superintendent  can  enter  upon  the  body  of  the  card  general  infor- 
mation, leaving  a  number  of  coupons,  each' of  which  may  be  de- 
tached by  the  foreman  of  a  room  as  soon  as  his  process  of  manu- 
facture is  complete.  This  coupon  is  thereupon  sent  to  the  super- 
intendent, the  total  assembled  coupon-cards  in  the  superinten- 
dent's office  representing  the  progress  of  the  work  through  the 
factory.  The  value  of  this  system  is  enhanced  by  the  readiness 
by  which  a  card  record  may  be  duplicated  or  triplicated.  Blank 
cards  suitably  printed  and  ruled  with  form  appropriate  for  their 
use,  are  blocked,  interspersed  with  sheets  of  corresponding  size 
on  light  weight  paper.  Thus  by  one  process,  a  carded  record  is 
rendered  in  duplicate  or  triplicate,  which  in  combination  with  the 
coupon  system  reduces  the  labor  of  maintaining  detailed  cost 
records  to  a  minimum.  Rapid  consultation  of  the  completed 
record  is  facilitated  by  means  of  guide  cards,  protruding  at  fre- 
quent intervals  above  the  inscribed  cards,  and  like  sign  posts 
pointing  the  eye  directly  to  the  desired  information.    The  rapidly 


352  THE  COMPLETE  COST-KEEPER. 

increasing  demand  for  card  system  has  stimulated  improvement  in 
the  manufacture  of  cabinets  essential  as  receptacles  for  the  cards, 
4nd  the  mechanism  of  these  cabinets  has  been  perfected  so  that 
€very  possible  convenience  and  safeguard  is  provided  the  card 
Iceeper. 

It  is  a  universally  recognized  fact  that  each  manufacturing 
plant  is  unique  in  itself  and  possesses  some  features  distinctive 
from  any  other  establishment.  It  is  therefore  essential  that  each 
manufacturer  should  have  a  system  adaptable  to  his  own  particu- 
lar requirements.  And  this  individuality  of  records  becomes  pos- 
sible only  by  means  of  the  card  system  of  cost  accounting. 


THE  EXPENSE  ACCOUNT. 


It  would  seem  at  first  sight  to  be  an  easy  matter  to  determine 
whether  a  given  factory  expenditure  should  be  charged  as  a  loss, 
or  credited  as  a  permanent  gain  to  the  business.  When,  however, 
all  of  the  aspects  of  any  factory  operation  are  considered  fully, 
it  will  be  seen  that  there  may  be  strong  arguments  for  regarding 
some  particular  item  or  items  of  expenditure  as  either  loss  or  gain, 
according  to  the  angle  of  observation.  This  Janus-faced  expendi- 
ture item  is  more  likely  to  appear  in  the  machine-shop  than  in  the 
simpler  manufacture  of  textiles  and  so  on,  where  all  material 
purchased  has  a  certain  pretty  constant  waste  percentage,  and  all 
direct  labor  expended  goes  unequivocally  to  the  production  of  sala- 
ble merchandise.  Precisely  the  same  conditions  occur  in  some 
classes  of  metal-working  establishments.  GeneraUy  speaking,  it 
may  be  said  that  all  cases  of  simple  repetitive  manufacture  with 
variations  which  are  but  slight  or  with  no  variations  whatever,  in- 
volve fewer  doubtful  items  of  outlay  than  do  those  factory  opera- 
tions which  lead  to  the  production  of  improved  new  things,  al- 
though, when  a  close  examination  of  certain  items  of  textile-fac- 
tory outla\  is  made,  it  will  be  seen  that  there  are  plausible  argu- 
ments for  charging  them  as  permanent  losses  or  unproductive  ex- 
pense, or  for  crediting  them  as  permanent  gains  and  highly  valuable 
assets.  So  many  different  and  oftentimes  obscure  causes  and  con- 
ditions lead  to  the  commercial  success  or  failure  of  the  factory 
that  an  even  fairly  broad  consideration  of  the  scope  and  effect  of 
certain  expenditures  which  seem,  at  first  sight,  to  be  unquestion- 
ably chargeable  to  expense,  will  commonly  show  the  truth  of  the 
proverb  asserting  that  there  is  no  loss  without  some  gain. 

Take  advertising  expense,  for  instance.  Obviously  there  can 
be  no  increase  of  salable  factory  product  gained  by  money  spent 
in  advertising,  hence  advertising  should  be  charged  directly  to 
expense;  that  is  one  view.  A  view  which  includes  the  probabili- 
ties of  the  future  shows  at  once  that  past  advertising  extends  and 
increases  the  probabilities  of  orders  for  the  factory  product  in  the 
future,  since  the  recognition  and  good  will  of  the  purchasing  pub- 


354  THE  COMPLETE  COST-KEEPER. 

lie  are  certainly  at  the  very  head  and  front  of  valuable  factory 
assets. 

It  is,  however,  m6re  noticeably  the  case  that  accountants  disa- 
gree in  a  very  marked  manner  over  the  final  disposition  of  large 
items  of  factory  expenditure  where  there  are  certain  tangible  fac- 
tory residues  left  in  possession  of  the  factory  after  the  completed 
finished  product  has  been  delivered  to  the  customer  and  paid  for 
by  him. 

Suppose,  in  tfie  instance  of  a  machine-tool  factory,  an  order 
is  received  for  a  lathe  of  certain  dimensions,  and  that  because  a 
lathe  of  that  particular  size  has  not  been  hitherto  produced  by  this 
particular  factory,  or  because  the  superintendent  desires  a  better 
product,  or  for  any  other  reason,  the  factory  decides  to  fill  this 
order  with  something  dififering  from  anything  it  has  before  made. 
Similar  cases  arise  constantly,  and  will  continue  to  arise  for  a  long 
time,  perhaps  forever,  since  it  is  never  safe  to  say  that  the  final 
best  fonn  of  any  machine  product  has  been  reached.  It  appears 
today  that  the  sewing-machine  and  the  bicycle  have  reached 
their  ultimate  forms  and  cannot  be  changed  to  advantage,  but  it 
is  not  safe  to  assert  that  this  is  the  case.  We  know  that  the 
sewing-machine  and  the  bicycle,  which  have  both  been  subjects  of 
exhaustive  research  by  mechanical  experts  and  inventors  of  all 
civilized  nations,  have  been  resolved  into  standard  forms  which 
now  appear  to  be  incapable  of  betterment  and  have  not  recently 
been  changed  to  advantage.  In  the  case  of  small  firearms  it  has 
often  been  thought  that  the  final  limit  of  possible  improvement 
had  been  reached ;  but  quite  to  the  contrary,  improvements  in  rifles 
have  been  made  very  lately  and  more  such  improvements  will 
doubtless  appear.  Generally  speaking,  strenuous  competition  de- 
mands improved  machinery,  and  it  may  be  safely  assumed,  there- 
fore, that  the  production  of  new  forms  of  existing  types  of 
machines,  having  increased  powers  of  accurate  production,  will 
continue  to  be  in  the  future,  as  it  has  been  in  the  past,  the  most 
important  factor  of  commercial  success  in  machine-building  fac- 
tories. 

It  having  been  decided  to  fill  the  lathe  order  with  a  new  crea- 
tion, the  usual  shop  procedures  are  begun.  First,  the  new  lathe 
receives  arduous  and  costly  attention  in  the  drawing  room,  involv- 
ing the  severest  labor  of  the  highest  talent  available,  with  a  cor- 


THE  COMPLETE  COST-KEEPER,  355 

respondingly  large  money  expenditure,  resulting  in  the  production 
of  the  drawings  requisite  for  the  building  of  the  improved  lathe. 
Next  the  drawings  go  to  the  pattern-shop,  and  a  costly  set  of  pat- 
terns is  produced  for  the  use  of  the  foundr}',  which  finally 
furnishes  a  set  of  castings  to  the  machine  department,  and  the 
actual  construction  of  the  new  lathe  itself  begins.  The  lathe  is 
finished,  delivered  to  the  customer,  is  satisfactory  and  is  paid  for 
at  contract  price,  and  the  establishment  building  this  successful 
lathe  has  remaining  in  its  possession  the  drawings  and  patterns 
therefor,  which  may  have  cost  more  money  expenditure  than  the 
actual  outlay  for  the  construction  of  the  lathe  delivered  to  the  cus- 
tomer, or  even  more  than  the  whole  price  paid  by  the  customer  for 
the  lathe. 

At  this  point  of  this  transaction,  the  actual  case  is  very  pos- 
sibly this :  the  lathe  builder  has  paid  out  more  money  in  producing 
the  lathe  than  the  customer  has  paid  for  it,  and  the  whole  matter 
involves  a  loss,  if  the  drawings  and  patterns  are  charged  to  the 
expense  account.  If,  however,  the  lathe  drawings  and  patterns  are 
credited  as  shop  assets,  the  whole  transaction  shows  a  gain  on  the 
books,  although  more  money  has  been  paid  out  than  has  been 
paid  in,  and  if  an  actual  cash  gain  is  to  be  had  on  the  transaction 
it  must  come  from  future  operations,  involving  the  use  of  the  costly 
drawings  and  patterns  left  in  possession  of  the  factory. 

The  questions  arising  from  this  simple  example  of  filling  the 
lathe  order  appear  in  connection  with  all  factory  equipment.  At 
the  time  a  new  factory  plant  has  been  installed  and  before  produc- 
tion and  sales  of  product  begin,  the  total  investment  represents,  in 
point  of  fact,  a  total  loss,  and  unquestionably  should  be  charged 
directly  to  expense,  and  this  is  in  some  cases  done,  and  the  whole 
cost  of  an  extensive  factory  equipment,  outside  of  the  forced  sale 
value  estimate  of  the  ground  and  factory  buildings,  is  written 
into  the  expense  account,  thus  making  the  concern  a  bankrupt  on 
the  face  of  its  own  accounting,  or,  if  not  a  bankrupt,  because  of 
faith  and  yet  unexpended  capital  in  the  hands  of  its  projectors,  a 
heavy  debtor  with  no  assets.  This  is  the  actual  position  of  the  new 
factory  not  yet  in  work,  and  if  the  factory'  accounting  is  based  on 
the  actual  condition  of  time  past  and  present,  every  thing  to  date 
is  an  outlay  with  no  return  and  must  be  written  as  a  loss. 

The  expectation  for  the  future  is  not  an  accomplished  fact. 


356  THE  COMPLETE  COST-KEEPER. 

It  is  a  possibility,  beyond  any  question,  and  a  clear  probability  in 
the  minds  of  those  capitalists  who  have  invested  in.  the  factory 
plant.  It  may  even  be  said  correctly  to  be  as  likely  to  produce 
profitable  returns  as  any  human  effort  can  be,  and  yet  the  fact  is 
that  when  the  factory  opens  its  doors  to  begin  production  its  books 
must  show  simply  an  outlay  with  no  return,  , 

Going  back  to  the  lathe  order ;  at  a  subsequent  period  we  may 
find  that  the  patterns  and  drawings  have  proved  to  be  assets  in  con- 
stant profitable  use ;  the  lathe  may  have  been  found  extremely 
suitable,  and  many  duplicates  may  have  been  ordered  and  the 
whole  transaction  at  this  period  may  show  a  large  gain.  On  the 
other  hand,  the  lathe  may  have  met  only  a  special  and  rarely  occur- 
ring demand.  There  may  have  been  few  orders  for  duplication, 
or  none  at  all,  and  the  drawings  and  patterns  instead  of  being 
valuable  assets  in  constant  profit-producing  use,  may  have  been 
wholly  unproductive,  and  even  a  source  of  more  loss  in  the  way  of 
insurance  and  storage  room. 

Hence  it  is  very  clear  that  the  factory  accountant  who  deals 
with  facts  and  conditions  of  the  present  moment  only  will  write 
the  lathe  drawings  and  patterns  into  the  expense  account,  and  thus 
make  the  transaction  of  filling  the  original  lathe  order  show  a  loss, 
while  the  factory  accountant,  who  has  hope  and  faith  in  the  future, 
will  write  the  lathe  drawings  into  the  factory  assets  because  of  his 
reliance  on  probabilities.  And  both  proceedings  are  correct,  and 
no  difference  in  the  future  profits  or  losses  of  the  lathe  builder  is 
made  by  writing  the  drawing  and  pattern  costs  either  way.  But 
in  the  one  case  the  accounts  show  a  gain  which  has  not  accrued, 
while  in  the  other  case  they  show  a  loss  which  at  some  future 
.  time  may  be  recouped ;  hence  either  accounting  may  be  shown  in 
the  future  to  be  faulty. 

If  the  case  of  the  lathe  order  is  carried  to  the  extreme,  and 
the  lathe  builder  continues  to  work  only  on  new  orders  without 
duplication,  he  must,  of  course,  transform  his  cash  in  bank  into 
unused  drawings  and  patterns,  and  cease  to  do  business  when  his 
original  capital  is  exhausted,  and  precisely  this  condition  of  aflFairs 
has  occurred  many  times  where  the  operations  of  a  machine  fac- 
tory were  directed  by  a  really  skillful  and  able  machine  designer, 
whose  every  individual  creation  was  an  operative  success, and  who 
well  and  worthily  sustained  his  high  reputation  as  a  mechanician. 


THE  COMPLETE  COST-KEEPER.  35^ 

In  this  lamentable  and  not  infrequent  case,  the  ingenious  man- 
ager may  fancy  up  to  the  last  moment  of  open  doors  that  he  is 
in  a  prosperous  financial  condition,  because  his  books  show  large 
gains  in  the  way  of  shop  equipment  which  are  his  very  own.  He 
says  to  himself:  "All  of  these  machines  which  I  have  produced 
have  been  good,  have  given  satisfaction,  and  the  drawings  and 
patterns  and  special  tools  for  their  production  must  certainly  be  of 
great  value,  because  they  will  enable  me  to  produce  future  dupli- 
cations at  a  large  profit."  But  this  ingenious  and  able  machine 
designer  has  not  the  commercial  instinct  which  leads  him  to  deVote 
his  energies  to  the  procurement  of  orders  for  repetitions  of  his 
work ;  on  the  contrary,  the  natural  trend  and  bent  of  his  mentality 
is  to  produce  new  things  and  ignore  the  successes  of  the  past,  and 
if  left  to  himself,  bankruptcy  is  much  more  probable  than  commer- 
cial gain. 

The  other  extreme  is  found  in  the  factory  managed  by  the 
mind  of  purely  commercial  instincts,  the  mechanical  mind  and  the 
commercial  mind  being  as  far  asunder  as  the  poles  both  in  their 
motives  and  methods  of  procedure.  The  man  of  mechanical 
mind  conceives  the  idea  of  a  real  and  valuable  improvement, 
embodies  it  in  usable  form,  scores  an  unqualified  success,  and 
washes  his  hands  of  the  whole  matter;  he  has  unriddled  the  rid- 
dle, is  satisfied  with  his  effort,  and  either  quits  it  and  goes  on  with 
something  else,  some  new  problem  seized  by  his  active  mind,  or 
sees  further  improvements  and  refinements  to  be  made,  which  may 
be  mechanically  correct,  but  do  not  add  ytry  much  to  the  working 
value  of  his  first  achievement  and  so  make  no  money.  The  com- 
mercial mind  sees  the  money  possibilities  inherent  in  the  new  pro- 
duction of  the  mechanical  mind,  and  gives  its  whole  efforts  to  the 
securing  of  orders  for  duplications,  declaring  the  present  produc- 
tion to  be  not  only  the  best  thing  that  ever  w^as,  but  the  best  thing 
that  ever  can  be,  and  setting  its  face  like  a  flint  against  any  change, 
and  so  does  secure  orders  for  repetitions  and  makes  money  by 
advocating  established  practice. 

The  commercial  mind  and  the  mechanical  mind  are  often  asso- 
ciated as  equal  powers  in  a  factory  management,  and  sometimes 
achieve  commercial  success  where  thus  associated  on  even  terms. 
A  money  success  is,  however,  much  more  likely  to  eventuate  where 
the  deciding  authority  lies  with  the  commercial  mind,  while  the 


358  THE  COMPmTE  COST-KEEPER. 

mechanical  mind  is  left  at  liberty  to  evolve  new  creations,  being 
capitalized  and  supported  by  the  sale  of  duplications  of  past  suc- 
cesses, on  orders  secured  by  the  efforts  of  the  directing  commer- 
cial mind. 

If  the  accounting  is  directed  by  the  purely  commercial  mind, 
the  cost  of  developing  new  ideas  is  invariably  charged  into  the 
expense  account,  because  the  commercial  mind  instinctively  and 
naturally  conforms  to  actual  commercial  conditions  and  fully  rea- 
lizes the  possibility  of  forced  sales  with  the  factory  door  closed. 

A  going  concern  has  intangible  assets  in  the  way  of  good 
will  and  custom,  which  are  undoubtedly  of  the  very  highest  value 
so  long  as  the  business  continues  with  open  factory  doors.  At  a 
forced  sale  these  intangible  assets  become  utterly  valueless.  They 
shrink  to  nothing,  and  disappear  as  completely  as  if  they  had  never 
existed,  although  they  were  the  very  life  and  breath  of  the  busi- 
ness while  it  continued  to  be  operative. 

In  the  case  of  a  forced  sale,  drawings,  patterns,  and  special 
factory  tools  are  found  to  be  absolutely  without  buyers.  The 
drawings  are  not  worth  so  much  as  the  rolls  of  blank  paper  on 
which  they  were  made.  The  patterns  are  not  worth  so  much  as 
the  lumber  used  in  their  construction  cost,  and  the  special  shop 
tools  and  fixtures,  so  highly  valued  by  the  fine  mechanical  mind 
which  produced  them,  will  not  sell  for  so  much  as  would  the  iron 
in  the  pig  and  the  steel  in  the  bar  of  which  they  were  made. 

Yet  where  the  factory  accounting  is  directed  by  the  mechan- 
ical mind  it  will  invariably  be  found  that  shop  tools  and  appliances 
are  carried  in  the  accounting  as  assets,  in  greater  or  less  degree. 
In  some  cases  a  certain  proportion  of  the  drawing,  pattern,  and 
special-tool-costs  is  charged  to  expense,  and  a  certain  other  por- 
tion is  credited  as  an  asset.  Small  tools  up  to  certain  sizes  will  be 
found  in  some  cases  charged  to  expense,  while  above  this  limit 
the  costs  of  similar  tools  will  be  carried  as  assets. 

In  point  of  fact,  referring  to  machine  patterns  only,  a  large 
stock  of  wooden  patterns  is  a  source  of  constant  expense,  requiring 
great  storage  room — which  must  be  neither  damp,  too  cold,  nor  too 
warm — large  insurance,  and  the  care  of  one  or  more  attendants, 
and  individual  patterns  are  often  not  used  for  years  together, 
while  at  a  forced  sale  these  costly  patterns  would  bring  absolutely 
nothing.    Yet  it  is  a  very  common  thing  to  find  patterns  appearing 


THE  COMPLETE  COST-KEEPER.  359 

in  factory  accounts  as  assets  of  many  thousands  of  dollars  in  value. 

The  prime  object  of  factory  accounting  is  surely  to  present 
to  the  eye  of  the  manager  a  correct  and  faithful  showing  of  the 
actual  values  under  his  control.  Are  those  actual  values  the  prob- 
able forced-sale  realizations,  or  are  they  the  radiantly  hopeful  sup- 
posititious values  dependent  on  good  trade  and  an  abundance  of 
orders  ? 

To  the  purely  commercial  mind,  taking  nothing  on  chances, 
the  forced-sale  value  must  appear  to  be  the  only  proper  value  to 
be  given  to  factory  plant  in  the  accounts.  To  the  mechanical  mind 
it  seems  preposterous  to  write  all  the  cost  of  these  highly  valued 
shop  treasures  directly  into  the  expense  account. 

The  one  method  makes  the  books  show  what  could  probably 
be  realized  if  the  factory  doors  were  closed.  The  other  method 
makes  the  books  show  the  factory  to  be  wealthy  in  many  cases 
where  it  is  really  bankrupt.  It  makes  no  actual  difference  in  the 
cash  in  bank  whether  these  disputed  items  are  written  into  expense 
or  assets.  Account  footings  are  not  cash.  But  erroneous  assump- 
tions as  to  values,  leading  to  erroneous  asset  totals,  are  very  likely 
to  lead  to  errors  in  management,  and  surely  the  last  thing  in  the 
world  to  be  desired  by  a  factory  manager  is  a  self-deception,  lead- 
ing him  to  believe  his  cash  resources  larger,  and  even  vastly 
larger,  than  they  really  are. 

It  is  perfectly  true  that  the  first  requisite  of  commercially 
valuable  factory  accounting  is  itemization  showing  correctly  in 
minute  detail  where  the  money  goes.  In  the  old  days  of  the 
machine  shop  it  was  a  common  thing  to  keep  a  "shop"  account, 
and  charge  this  shop  account  with  all  expenditures  not  directly 
entering  into  the  salable  product.  Both  labor  and  material  of  every 
description  went  into  this  shop  account,  lumped  together,  and  the 
footing  told  the  manager  the  mere  total  of  indirect  expenditures, 
and  gave  no  indication  of  possibly  economical  changes  in  factory 
methods  because  the  items  of  expenditure  were  not  classified. 

The  modem  factory  accountant  divides  the  items  of  indirect 
expense  into  building  maintainance,  plant  betterments,  machine 
repairs  which  opens  a  repair  account  with  each  department  of  the 
factory,  with  each  detail  of  each  department  repair,  and  often  with 
each  individual  machine — certainly  with  each  separate  class  of  ma- 
chines in  the  factory  plant,  and  so  on ;   he  knows,  or  believes  he 


36o  THE  COMPLETE  COST-KEEPER. 

knows,  exactly  what  the  factory  pays  for  sweeping  floors,  carting 
ashes,  and  oiling  shafting,  and  aims  at  minute  exactitude  in  all 
records  of  indirect  expenditure.  This  inevitably  leads  to  a  close 
scrutiny  of  every  item  of  this  class,  thus  enabling  the  manager  to 
decide  readily  on  changes  of  methods  or  men ;  it  also  leads  directly 
to  the  view  that  all  such  items  of  indirect  expenditure  as  are  devot- 
ed to  permanent  betterments  of  buildings,  tools,  or  plant  generally, 
go  towards  the  reduction  of  the  cost  of  merchantable  product,  and 
hence  should  be  credited  as  assets,  either  wholly  or  in  part,  al- 
though, as  previously  pointed  out,  there  is  no  possible  way  in 
which  these  items  can  be  made  directly  to  return  the  cash  which 
they  cost.  They  are  of  value  to  the  going  concern  only,  and  do 
not  bring  anything  at  forced  sales. 

But  the  modern  factory  accountant  must  of  necessity  have  a 
judicial  mind  and  also  an  active  conscience.  He  must  be  able  to 
perceive  clearly  the  whole  result  of  his  indirect  expenditures,  and 
he  must  apportion  his  charges  correctly  according  to  these  effects. 
These  needful  qualifications  of  the  good  factory  accountant  lead, 
in  many  cases,  to  really  exasperating  shadings  and  divisions  of  in- 
direct expense,  often  involving  much  clerical  labor  and  particu- 
larly obnoxious  and  aggravating  to  subordinates  who  lack  the 
wide  view  and  high  sense  of  justice  and  quick  conscience  of  the 
superior  accountant  who  installs  the  system. 

The  subordinate  says :  "Why  is  all  this  unending  labor  of  use- 
less hair-splitting  added  to  the  really  useful  part  of  my  work? 
Why  must  I  be  always  on  the  outlook  for  the  prescribed  final  dis- 
position of  these  small  and  trifling  items,  which  might  just  as  well 
go  bodily  into  the  general  expense  and  done  with  it,  as  be  split 
up  on  a  fanciful  scheme  of  percentages,  and  charged  into  some  of 
these  minor  divided  accounts,  none  of  which  can  ever  be  returned 
to  the  factory  in  direct  cash?" 

From  the  standpoint  of  the  subordinate  his  complaint  is  well 
founded.  The  chief  accountant,  is,  however,  likely  to  resent  such 
criticism  with  an  intensity  of  acrimony  precisely  proportioned  to 
his  real  breadth  of  view,  sense  of  justice,  and  activity  of  con- 
science. Hence  the  chief  accountant  says:  "The  object  of  our 
whole  accounting  system  is  to  group  allied  items  of  expenditure 
finally  under  headings  which  correctly  represent  the  ultimate  re- 
dults  of  such  expenditures.    True,  the  money  has  gone,  and  will 


THE  COMPLETE  COST-KEEPER.  361 

never  be  returned  in  direct  form.  Part  of  this  money  has  been  so 
expended  that  it  has  no  future  earning  powers ;  part  of  it  has  been 
so  placed  that  it  has  large  and  valuable  future  earning  powers.  I 
might  as  well  throw  away  the  whole  system  as  fail  to  recognize 
these  differences  in  minor  expenditure  results." 

Consequently  the  chief  accountant  commands  the  subordinate 
to  follow  the  system,  and  the  subordinate  obeys  under  strong 
mental  protest,  and  a  condition  of  high  frictional  resistance  is 
established  and  maintained  permanently,  much  to  the  detriment 
of  the  comfort  and  efficiency  of  all  concerned. 

This  is  no  merely  fanciful  supposition.  In  one  of  the  largest 
and  best  of  American  machine-tool  factories  a  cost-system  was, 
and  probably  still  is,  in  use  which  involved  a  vast  number  of  minor 
divided  expense  accounts.  This  system  was  installed  by  one  of 
the  chief  owners,  a  man  of  naturally  high  abilities  with  great 
breadth  of  view  and  a  keen  sense  of  justice,  who  has  given  a  vast 
amount  of  consideration  to  factory  accounting,  has  traveled  ex- 
tensively both  in  Europe  and  the  United  States,  and  is  familiar 
with  both  the  general  theory  of  factory  accounting  and  the  partic- 
ular systems  adopted  in  many  establishments  of  high  repute.  Yet 
the  cost-keeper  of  this  large  establishment,  who  with  seven  assis- 
tants found  it  difficult  to  gather  and  separate  the  items  of  expendi- 
ture according  to  the  system  installed,  had  no  hesitation  in  saying 
with  bitter  emphasis  that  all  this  unremitting  labor  of  cost-keeping 
brought  in  absolutely  no  valuable  return,  and  that  in  his  opinion, 
in  view  of  the  constant  friction  caused  by  the  exercise  of  autocratic 
authority  necessary  to  carrying  out  the  details  of  the  cost  gath- 
ering, the  factory  would  actually  be  better  in  every  way  if  the 
whole  cost-keeping  system  was  thrown  out  of  the  door. 

In  this  case  at  least,  it  was  clearly  evident  that  however  valu- 
able detailed  information  as  to  minor  expenditure  items  may  be 
to  the  manager,  there  is  yet  a  limit  to  the  subdivision  of  accounting 
beyond  which  it  is  highly  undesirable  to  go. 

Probably  there  will  always  be  very  wide  margins  of  differ- 
ence between  the  methods  of  really  successful  factory  accoun- 
tants, in  this  particular  of  the  final  disposition  to  be  made  of  indi- 
rect expense  items.  There  is  always  the  choice  to  be  made  be- 
tween the  view  that  r^;ards  closed  doors  and  forced  sales  as  a 
possible  finality,  and  the  view  that  holds  the  factory  to  be  a  vital 


362  THE  COMPLETE  COST-KEEPER. 

individual  existence,  with  probabilities  of  immortality. 

In  point  of  fact,  factories  begin,  run  their  course  of  natural 
life,  and  die,  like  all  other  creatures,  so  much  is  certain  from  the 
daily  record  of  current  events. 

Some  factory  accountants  will  hold  to  the  theory  that  their 
business  is  to  deal  with  going  concerns,  and  that  the  factory  with 
closed  doors,  dead  and  gone  forever,  is  not  a  profitable  subject  of 
consideration.  These  accountants  will  carry  a  greater  or  less  pro- 
portion of  the  indirect  expense  into  accounts  showing  as  assets. 
Other  factory  accountants,  taking  heed  to  the  fate  of  all  human 
enterprises,  will  have  closed  doors  always  in  their  mental  view, 
and  will  write,  directly  into  the  expense  account,  all  outlays  which 
cannot  reasonably  be  expected  to  return  in  cash  or  bankable  paper, 
with  no  saving  clause  whatever  as  to  future  earning  possibilities. 


MECHANICAL  AIDS  TO  FACTORY  ACCOUNTING. 


Under  this  general  title  some  of  the  various  time-clocks, 
watchman's  detectors,  programme-clocks,  and  calculating 
machines  which  are  offered  for  factory  use  are  briefly  noted  in  the 
following  pages.  Some  of  these  machines  are  not  adapted  to  use 
in  ordinary  factory  accounting,  but  all  have  their  fields  of  possible 
employment  in  facilitating  manufacturing  and  financial  opera- 
tions, and  are  of  interest. 

The  most  important  of  these  machines,  from  the  factory 
accountant's  point  of  view,  are,  of  course,  the  workmen's  time- 
clocks,  which  register  the  time  of  arrival  of  the  workmen  at  the 
gate,  each  man's  individual  record  being  made  by  his  own  hand. 
There  are  two  general  types  of  these  clocks,  in  one  of  which  each 
workman  carries  a  key,  which  he  inserts  in  a  keyhole  in  the  re- 
cording-clock case,  and  gives  it  a  turn,  thereby  recording  his  num- 
ber and  the  time  of  the  operation.  The  other  form  of  workmen's 
time  clock  does  not  require  the  use  of  a  key,  it  being  provided 
with  push  buttons,  so  that  all  the  workman  has  to  do  in  passing 
the  gate  is  to  push  the  button  bearing  his  number.  This  is  a 
very  rapid  operation,  and  seems  preferable  in  point  of  speed  to 
the  key  systems. 

In  regard  to  the  efficiency  and  economy  of  making  work- 
man's time  records  by  the  use  of  a  clock,  there  seems  to  be  no 
question.  The  use  of  workmen's  time-recording  clocks  is  thor- 
oughly established  in  a  great  many  of  our  largest  factories,  and 
the  use  of  these  clocks  is  rapidly  extending;  in  fact,  it  may  be 
said  that  nearly  all  factories  at  present  use  either  the  individual 
workman's  brass  check,  or  some  form  of  time-registering  clock, 
the  workman  being  made,  with  both  the  brass  check  and  the  time- 
clock,  to  register  by  his  own  act  the  hour  of  his  arrival  at  the 
works. 


364  THE  COMPLETE  COST-KEEPER. 

In  some  shops,  however,  the  workmen's  time  continues  to  be 
taken  in  the  old  manner  by  a  time-taker,  but  there  seems  to  be 
no  reason  whatever  for  the  continuance  of  this  early  method.  It 
survives  in  some  old  establishments,  probably  because  of  an  im- 
pression that  time  taken  by  an  official  appointed  for  that  purpose 
gives  a  more  reliable  and  authentic  record  than  that  obtained  by 
any  other  means.  This  view,  however,  does  not  seem  to  be  well 
founded.  On  the  contrary,  it  appears  to  be  quite  certain  that  the 
mechanically  made  record  is  by  far  the  least  liable  to  error  of  the 
two,  because  if  the  mechanism  of  a  time-clock  is  regular  in  its 
action,  nothing  could  well  be  more  accurate  than  the  record  made 
by  the  workman  himself  on  the  sheet  of  paper  carried  by  the  clock- 
cylinder. 

In  the  most  advanced  systems  of  factory  management  me- 
chanically made  workmen's  time-records  are  universally  employ- 
ed; and  it  may  be  noted  that  in  these  advanced  systems  the 
mechanically  made  time-record  is  invariably  accepted  as  correct 
and  final.  This  is  in  strong  contrast  to  the  common  practice 
where  the  workman's  brass  check  is  used,  it  being  in  many  shops 
the  custom  to  adjust  the  time-record  twice  each  day  where  the 
brass  check  is  used.  This  procedure  always  involves  the  expen- 
diture of  considerable  time  on  the  part  of  the  time-clerk,  and  of 
the  foremen  of  the  various  departments. 

This  practice  of  adjustment,  or  going  behind  the  records  in 
any  matter  connected  with  factory  accounting,  appears  to  be 
wholly  indefensible.  The  record  once  made  in  any  branch  of  fac- 
tory accounting  should  be  held  as  final;  "adjustment"  admits  the 
probability  of  error  in  the  original  entry,  and  casts  doubt  on  the 
whole  system  of  accounting  employed.  Circumstances  continually 
arise,  however,  which  make  it  necessary  to  make  adjustments  of 
charges  to  customers,  and  such  adjustments  and  revisions  are 
unavoidable.  » 

In  the  case  of  the  workmen,  however,  a  single  record  in  the 
simple  matter  of  time-arrival  of  the  workmen  at  the  factory 
should  be  sufficient.  The  workman  is  in  intimate  relation  with 
the  factory,  and  upon  taking  service  accepts  the  rules  and  regu- 
lations in  force  in  the  establishment,  and  hence  it  is  quite  possible 
to  make  such  conditions  with  the  workmen  as  may  seem  just  and 


THE  COMPLETE  COST-KEEPER.  365 

desirable  by  the  management.  In  general  terms  it  may  be  asserted 
that  better  results  are  obtained  from  very  strict  and  inflexible 
time-regulations  than  from  a  benevolent  policy,  which  allows  a 
certain  margin  for  human  fallibility.  Undoubtedly  human  falli- 
bilities exist.  Undoubtedly,  also,  the  more  lenient  the  treatment 
accorded  to  fallible  human  beings,  the  more  fallibilities  will  ap- 
pear in  their  conduct. 

In  the  authors  experience,  extending  over  many  years  in 
many  different  workshops,  it  has  been  the  rule  that  the  best  results 
in  regard  to  the  promptness  of  entry  of  workmen  were  to  be 
found  in  the  shops  where  the  rules  were  most  strict;  and  it  was 
also  uniformly  observable  that  there  was  far  less  complaint  and 
ill-feeling  on  the  part  of  the  workmen  in  the  strict  shops,  than  in 
those  where  a  few  minutes  latitude  was  tolerated. 

In  one  large  and  well  remembered  establishment,  the  regu- 
lations demanded  that  every  workman  should  be  at  his  place  of 
employment  in  the  factory,  with  his  working  clothes  on,  and  his 
tools  in  his  hand,  at  the  time  of  whistle  blowing.  Although  this 
rule  may  seem  arbitrary,  it  was,  so  far  as  could  be  observed  by  a 
mere  workman,  highly  satisfactory  in  operation  both  to  the  men 
and  to  the  management. 

It  may  seem  hard  that  the  factory  door  should  be  closed 
exactly  on  the  stroke  of  the  clock,  thus  possibly  shutting  out  a 
man  whose  foot  was  already  on  the  threshold  and  causing  him  to 
lose  time,  but  such  was  the  inexorable  practice  in  another  large 
establishment,  where  the  door  was  closed  and  was  not  opened 
again  for  25  minutes,  when  it  was  opened  for  5  minutes,  and  again 
closed  until  quarter-time,  when  it  was  again  opened  for  5  minutes, 
closing  at  the  end  of  the  first  quarter  of  the  day.  This  forced  the 
workmen  to  be  either  in  the  shop  on  time,  or  to  lose  half  an  hour, 
or  a  quarter  of  a  day. 

In  these  two  shops  mentioned,  which  had  the  most  severe 
rules  in  regard  to  workmens'  entry  of  all  establishments  within 
the  writer's  personal  recollection,  the  attendance  was  uniformly 
prompt,  and  there  was  never,  as  now  remembered,  any  particular 
evidence  of  dissatisfaction  on  the  part  of  the  workmen;  all  were 
treated  alike,  and  every  man  knew  exactly  what  was  expected  of 
him,  and  what  he  would  receive,  which  are  conditions  highly 


366  THE  COMPLETE  COST-KEEPER. 

favorable  to  harmonious  relations  between  employer  and  wage- 
earner. 

In  the  case  of  personal  adjustment  with  individual  workmen 
in  regard  to  small  losses  of  time,  a  man  is  never  certain  that  he 
will  suffer  the  penalty  of  his  own  fault,  but  is  always  hoping  that 
by  some  plea  he  can  keep  his  time  good,  whether  he  is  late  or 
not.  Good  factory  management  may  be  said  to  consist  of  clearly 
defined  lines  of  conduct,  as  between  employers  and  employed,  so 
rigidly  enforced  as  to  admit  of  no  variation  whatever. 

While  it  is  true  that  cases  arise  in  which  the  workman  may 
think  himself  hardly  treated,  and  in  which  the  employer  himself 
might  wish  that  he  could  be  free  to  exercise  clemency  without 
breaking  his  own  regulations,  there  is,  nevertheless,  a  smaller  per- 
centage of  dissatisfied  workmen  under  the  strictest  rules,  than 
under  the  most  lenient  regulations  consistent  with  any  approach 
to  business-like  management. 

If  this  assertion  be  accepted  as  correct,  then  the  mechanical 
record  of  the  workmen's  entry  to  the  factory  is  wholly  unobjec- 
tionable, and  it  only  remains  for  the  factory  manager  to  select 
that  clock  which  shall  produce  the  workmen's  time  record  with 
the  least  expense  and  inconvenience. 

Before  leaving  the  subject  of  accurate  time-keeping  and  of 
punctuality  on  the  part  of  the  workmen,  it  should  be  said  that 
the  employer,  and  the  factory  accountant,  should  fully  compre- 
hend the  real  relations  and  respective  losses  and  gains,  as  between 
employer  and  workmen,  which  arise  from  want  of  punctuality  on 
the  part  of  the  employee.  In  the  first  place,  the  loss  inevitably 
falls  wholly  upon  the  employer.  A  workman  may  be,  and  often 
is,  inside  of  the  factory  gates  before  starting  time,  and  many 
workmen  make  a  practice  of  being  ready  to  commence  operations 
as  soon  as  the  whistle  blows,  but  it  would  be  an  unheard-of  pro- 
ceeding for  workmen  to  begin  work  in  advance  of  starting  time, 
hence  there  is  no  such  thing  known  as  the  workman  offsetting  the 
time-loss  of  one  day  by  adding  to  his  hours  of  labor  on  another 
occasion.  In  the  majority  of  cases  the  workman  enters  the  fac- 
tory gates  only  a  minute  or  two  before  time  to  commence  work, 
with  the  consequence  that  before  he  has  reached  his  station  and 
prepared  himself  for  labor,  there  has  been  a  direct  loss  to  the 
employer  of  from  three  to  five  minutes  of  the  workman's  time. 


THE  COMPLETE  COST^KEEPER.  367 

The  "Chicago  Time-Recorder"  says  in  this  connection:  "A 
loss  of  only  five  minutes  time  for  employees  receiving  a  salary  of 
$2  per  day  amounts  as  follows : 

Employees.  One  year. 

25  $130.00 

50  260.00 

100  520.00 

500  2,600.00." 

This  is  the  total  loss,  to  the  management,  in  wages  only,  from 
a  daily  time-loss  of  only  five  minutes  for  each  of  the  number  of 
workmen  specified.  There  is  a  very  large  actual  increment  of 
this  loss,  caused  by  reduced  production  in  relation  to  fixed  char- 
ges. To  offset  these  losses  to  the  management,  there  should  be 
some  decided  gain  to  the  workmen  to  justify  a  slipshod  practice 
which  permits  these  continuous  small  losses  of  time  without  mak- 
ing some  strenuous  effort  to  secure  a  better  approach  to  punctuali- 
ty, but  in  point  of  fact  there  is  absolutely  no  gain  to  the  unpunc- 
tual  workman;  the  little  time  during  which  he  should  have 
worked,  but  did  not,  is  a  mere  negative  quantity,  benefiting  no  one, 
and  highly  detrimental  to  the  factory. 

Many  employers,  however,  feeling  that  the  workman  has  long 
hours  of  labor,  comparatively  small  pay,  and  a  hard  life  generally, 
desire  to  render  his  lot  as  easy  as  possible,  and  hence  say  by  their 
acts,  if  not  in  so  many  words,  that  they  will  simply  ignore  small 
losses  of  time,  and  take  no  measures,  of  sufficient  stringency  to 
be  effective,  to  correct  the  habits  of  the  dilatory  workmen.  Some 
workmen  are  always  on  time,  others  six  days  in  the  week  manage 
to  barely  get  inside  the  works  in  time,  or  as  often  as  not  perhaps 
are  a  minute  or  two  late,  always  taking  the  extreme  limit  which 
is  permitted.  This  cannot  be  regarded  otherwise  than  as  a  mere 
personal  habit  on  the  part  of  the  workman;  he  has  simply  fallen 
into  the  way  of  running  as  close  to  the  clock  as  he  possibly  can 
without  certain  loss  to  himself. 

Punctuality  involves  no  hardship  for  the  workman.  It  is  just 
as  easy  under  ordinary  circumstances  for  the  workman  to  be  a 
minute  or  two  ahead  of  the  whistle,  as  it  is  for  him  to  be  a  minute 
or  two  behind.  The  workman's  gain  from  the  toleration  of  un- 
punctuality  is  absolutely  nothing,  while  the  loss  to  the  factory 
made  by  want  of  prompt  attendance  on  the  part  of  the  workman 


368  THE  COMPLETE  COST-KEEPER. 

is  a  very  serious  matter ;  and  no  employer  can,  in  fairness  to  him- 
self, permit  the  continuance  of  any  system,  even  though,  founded 
in  a  generously  benevolent  consideration  for  the  welfare  of  his 
workmen,  when  he  becomes  aware  that  his  sympathy  leads  to  a 
tardy  appearance  of  the  men  at  the  gate. 

It  is,  undoubtedly,  largely  the  fault  of  the  management  of 
some  otherwise  well  conducted  establishments  that  continual  ad- 
justments of  the  workmen's  time  are  required.  The  employer  is 
kind-hearted,  and  cannot  bear  even  to  appear  to  oppress  those  who 
are  his  servants.  It  is,  however,  a  most  mistaken  kindness  which 
tolerates  any  laxity  in  the  matter  of  prompt  entering  of  the  works. 

A  large  number  of  key-operated  time-clocks  and  a  large 
number  of  plunger-actuated  time-clocks  are  in  use.  Both  of  these 
forms  of  registering-clocks  are  here  illustrated  and  described. 

Calculating-machines  in  the  various  forms  of  straight  and 
circular  slide  rules,  and  of  key-actuated  machines  for  performing 
the  various  operations  of  addition,  subtraction,  multiplication, 
and  division  are  well-known,  and  are  very  much  used  in  some 
establishments,  while  they  are  wholly  ignored  by  others.  It  seems 
very  clear  that  calculating-machines  should  be  used  in  every  place 
where  their  use  is  possible,  as  the  results  obtained  are  always  accu- 
rate, provided  the  mechanical  action  of  the  machine  is  perfect. 

It  should  be  noted,  however,  that  it  is  not  safe  to  depend  upon 
the  action  of  any  calculating-machine  which  can  be  made  to  give 
erroneous  results  by  operating  it  at  a  speed  beyond  a  certain  rate. 
The  use  of  calculating-machines  is  believed  to  be  steadily  extend- 
ing, and  in  some  forms,  as  the  cash-register,  in  certain  lines  of 
business  they  already  are  regarded  as  indispensable.  Calculating- 
machines  could  undoubtedly  be  used  to  great  advantage  in  many 
factories  where  they  are  not  now  employed.  In  the  hands  of  ex- 
pert operators  some  of  the  calculating-machines  obtain  results 
much  more  expeditiously  than  is  possible,  even  with  very  expert 
accountants,  by  the  use  of  ordinary  methods  of  computation.  In 
the  hands  of  persons  who  are  not  thoroughly  accustomed  to  their 
use,  there  is  no  gain  of  time  by  employing  even  the  very  best  forms 
of  computing-machines,  but  there  is  always  a  certainty  of  correct- 
ness in  the  results  reached,  and  this  is  a  very  great  point  in  favor 
of  the  employment  of  the  mechanical  device,  rather  than  the  speedy 
mental  calculations  of  the  expert  accountant. 


THE  COMPLETE  COST-KEEPER.  369 

Where  there  is  more  than  one  timepiece  .employed  in  a  fac- 
tory, it  is  an  essential  matter  that  all  the  clock-dials  should  record 
exactly  the  same  time.  This  demands  either  very  good  clocks  in 
each  department,  carefully  regulated,  and  all  made  to  corres- 
pond daily  with  some  one  of  the  number  selected  as  the  standard, 
or  else  that  the  movements  of  the  hands  of  all  the  dials  in  the 
factory  shall  be  governed  by  some  of  the  synchronizing  systems 
now  so  largely  used,  examples  of  which  are  illustrated  and  de- 
scribed hereafter. 

This  matter  of  uniform  time  in  all  departments  of  any  given 
establishment  is  of  more  importance  than  might  appear  on  the 
surface.  The  general  aim  of  every  efficient  system  of  factory 
management  and  accounting  must  always  be  towards  exactness  in 
every  particular,  and  it  certainly  shows  a  lack  of  attention  to 
exactness  in  details,  if  the  clock-dials  in  the  different  departments 
of  a  large  establishment  are  permitted  to  show  a  variation  in  the 
time-record.  Such  variations  are  annoying  to  a  correct  sense  of 
the  industrial  fitness  of  things,  and  are  also  liable  to  provoke  petty 
discussions  and  lead  to  unnecessary  conversation,  all  of  which 
can  be  avoided  by  the  use  of  synchronized  time-recorders  which 
cost  but  very  little,  if  anything,  more  than  an  equal  number  of 
fairly  good  ordinary  timepieces. 

The  whole  chronological  equipment  of  every  factory  should 
be  such  as  to  give  uniform  clock-dial  readings  throughout  the 
establishment,  and  the  time  should  be  exactly  correct  for  the  given 
locality. 

If  the  workmen  once  become  convinced  that  the  factory- 
time  is  right,  they  very  soon  conform  to  the  factory-time  require- 
ments. On  the  contrary,  if  the  factory-time  is  found  to  be  inac- 
curate even  at  very  widely  separated  intervals,  there  is  always  a 
question  in  regard  to  shop-time  which  leads  to  disagreeable  and 
unprofitable  results.  No  factory  can  afford  to  be  without  accu- 
rate time,  perfectly  synchronized  in  all  departments. 

The  programme-clock,  by  which  is  understood  a  clock-actu- 
ated mechanism  for  giving  various  signals  at  different  points  at 
certain  predetermined  times,  is  much  more  largely  used  in  educa- 
tional establishments  than  in  factories.  It  seems,  however,  that 
the  programme-clock  may  be  very  well  adapted  to  the  equipment 


370  THE  COMPLETE  COST-KEEPER. 

of  any  factory  which  aims  at  a  complete  system  of  accurate 
accounting. 

Programme-clocks  are  now  made  which  will  automatically 
vary  the  time  of  their  announcements  on  different  days  of  the 
week,  and  which  will  insure  the  automatic  performance  of  various 
duties  about  the  establishment,  such  as  opening  and  closing  the 
gates,  blowing  the  whistle,  timing  the  night-watchman's  duties, 
other  than  the  making  of  his  regular  rounds,  and  so  on,  the  pro- 
gramme-clock being  now  brought  to  such  a  stage  of  perfection 
as  to  be  able  to  certainly  perform  almost  any  operation  in  the  way 
of  announcement,  opening  and  closing  of  doors,  whistle-blowing, 
bell-ringing,  and  so  on. 

Here  again,  as  in  case  of  the  synchronizing  clock,  accuracy 
of  chronology  is  obtained,  and  disputes  and  discussions  are  avoid- 
ed by  the  elimination  of  the  fallible  human  element.  Unquestion- 
ably the  more  wholly  the  determination  of  factory  events  can  be 
relegated  to  the  unerring  direction  of  correctly-actuated  ma- 
chinery, the  less  the  possibility  of  question  as  to  accuracy. 

Broadly  considered,  the  well-regulated  factory  is  neither 
more  nor  less  than  one  complicated  and  accurately  timed  machine. 
Time  is  the  most  important  factor  in  machine-production  as  well 
as  in  machine-action,  and  cannot  be  too  certainly  divided,  and 
recorded,  and  determined  in  any  instance  affecting  factory-per- 
formance. Hence  the  propriety  of  placing  as  many  of  the  factory- 
events  as  possible  under  the  control  of  a  clock  of  indisputable 
accuracy. 


Computing  Machines. 


Unquestionably,  no  work  which  can  be  performed  accurately 
and  economically  by  machines  should  be  permitted  to  burden  the 
muscles  or  tax  the  mental  powers  of  man.  While  for  his  own 
happiness  and  contentment  every  man  must  work,  must  have  some 
form  of  avocation  or  employment  in  which  he  may  exert  his 
powers  of  production  with  both  interest  and  profit  to  himself,  all 
sound  economists  are  agreed  that  a  given  human  effort  should 
produce  the  largest  possible  effect  in  the  direction  intended. 

In  consequence  of  this  now  almost  universal  demand  for  the 
greatest  effect  from  the  least  manual  or  mental  effort,  machines 


THE  COMPLETE  COST-KEEPER.  371 

have  been  invented  and  applied  in  nearly  every  field  of  prcxiuction 
with  such  encouragingly  beneficial  collective  results,  that  almost 
all  opposition  to  the  use  of  machinery,  based  on  the  fallacious  belief 
that  the  substitution  of  mechanical  operations  for  hand  operations 
takes  the  bread  out  of  the  mouth  of  the  working  man,  which  once 
led  hand  weavers  to  destroy  power  looms,  and  in  the  first  half  of 
the  nineteenth  century  drove  mechanical  traction  off  from  com- 
mon roads,  has  disappeared  so  completely  that  the  whole  world 
may  now  be  said  tq  be  ready  and  eager  to  make  machines  take  the 
place  of  muscular  or  mental  labor  in  every  case  where  such  a  sub- 
stitution is  clearly  shown  to  be  possible  and  profitable. 

The  only  marked  and  widespread  exception  to  this  general 
willingness  to  increase  the  output  from  physical  and  mental  effort, 
seems,  oddly  enough,  to  be  found  among  bookkeepers  and  accoun- 
tants in  general,  they  as  a  class  appearing  to  be  yet  almost  wholly 
indifferent  to  the  possibility  of  lightening  their  labors  by  the  use  of 
cards  instead  of  books  as  mediums  of  record,  and  computing  ma- 
chines for  carrying  out  the  arithmetical  operations  inseparable 
from  any  industrial  commercial  operation,  instead  of  the  laborious 
and  exhausting  hand  and  head  work  methods  bequeathed  unchang- 
ed from  the  earliest  known  days  of  traders  and  merchants  to  the 
counting  rooms  of  to-day  the  world  over. 

Between  the  use  of  books  and  card  records  there  is  no  general 
advantage  as  to  accuracy.  All  hand-made  records  are  liable  to 
error,  and  a  faulty  record  can  be  made  on  a  card  as  easily  as  on  the 
page  of  a  book.  The  case  of  arithmetic  computations  is  another 
thing  altogether,  when  the  chances  of  error  as  between  mental  cal- 
culations and  mechanically  made  computations  are  concerned.  It 
is  true  that  in  no  case  is  the  machine-made  calculation  beyond  the 
possibility  of  error,  because  the  operations  of  the  calculating  ma- 
chines are  inaugurated  by  hand-made  movements  of  certain  parts 
of  the  machines,  hence  the  possibility  of  error  at  the  onset ;  again, 
there  may  be  an  abnormal,  unexpected  and  wholly  unintended  vari- 
ation in  the  movements  of  the  parts  of  the  calculating  machine  after 
it  receives  the  original  numbers  on  which  it  is  to  act,  thus  again 
giving  the  possibility  of  error  in  the  results  shown  mechanically. 
It  will  be  observed,  however,  that  the  machine  is  no  more  likely  to 
show  an  erroneous  conclusion  than  is  the  pen  of  the  accountant, 
who  may  err  in  his  first  notation,  and  may  again  err  in  the  mental 


372  THE  COMPLETE  COST-KEEPER. 

computations  based  upon  the  original  figures  recorded.  So  far, 
the  man  and  the  machine  stand  on  even  terms.  But  the  machine 
has  two  generic  advantages  over  the  mental  work ;  it  is  not  subject 
to  fatigue,  and  it  is  not  subject  to  those  vagaries  of  action  which 
sometimes  cause  a  bookkeeper  to  make  the  same  error  at  one  point 
only  in  his  calculations  many  times  in  succession.  It  is  very  high- 
ly probable  that  both  the  expert  accountant  and  the  high  class  com- 
puting machine  will  handle  the  original  notation  correctly,  but  it 
is  absolutely  certain  that  up  to  a  certain  rate  of  speed  the  machine 
will  do  the  right  thing,  while  the  best  mentality  is  always  liable  to 
what  may  be  termed  a  sporadic  error,  an  error  which  is  not  habit- 
ual, which  occurs  in  but  one  instance  on  a  given  occasion,  and  yet 
which  the  mind  may  repeat  through  several  successive  scannings 
of  the  faulty  operation. 

In  the  matter  of  fatigue,  the  machine  has  an  ernormous  advan- 
tage; it  is  as  fresh  and  ready  of  reception  and  certain  in  action  at 
the  end  of  the  day  as  at  the  beginning. 

These  being  the  conditions,  it  seems  very  strange  that  com- 
puting machines  are  in  such  comparatively  small  use,  since  the  use 
of  such  machines  must  at  least  relieve  the  accountant  of  a  very 
great  part  of  his  mental  labor,  and  it  is  difficult  to  avoid  the  conclu- 
sion that  this  rarity  of  employment  is  due  solely  to  a  general  ignor- 
ance of  the  labor-saving  and  accuracy-insuring  qualities  of  calcu- 
lating machines.  The  price  of  some  of  the  best  forms  of  these  ma- 
chines is  hardly  more  than  that  of  the  best  typewriters,  hence  it 
cannot  be  the  first  cost  which  prevents  their  general  introduction. 
It  is  true  that,  like  the  typewriter,  the  computing  machine  is  very 
slow  in  unskilled  hands,  but  this  is  true  of  almost  all  machines, 
and  in  almost  all  cases  where  sufficient  time  is  taken  to  make  the 
operator  even  fairly  familiar  with  the  operation  of  a  good  comput- 
ing machine  it  is  thenceforth  regarded  as  indispensable. 

Blaise  Pascal,  France,  when  but  a  youth  of  nineteen  or  twenty 
years,  is  the  first  recorded  inventor  of  a  calculating  machine  of 
considerable  scope,  a.  d.  1642-5.  Pascal  was  correct  in  his  theory, 
and  his  machine  has  been  used  as  the  foundation  for  many  later 
efforts. 

Beginning  with  the  never  completed  machine  of  Charles  Bab- 
bage,  the  construction  of  which  absorbed  a  British  government 
gfrant  of  $100,000,  besides  a  large  part  of  Babbage's  private  for- 


THE  COMPLETE  COST-KEEPER.  373 

tune,  an  exhaustive  presentation  of  all  the  various  computing  ma- 
chines which  have  been  attempted  or  produced  would  fill  more  than 
one  volume  like  the  Complete  Cost-JCeeper,  but  as  only  a  few  of 
these  machines  have  been  constructed  with  a  view  to  counting- 
room  use,  and  of  those  so  intended  only  a  very  small  part  have 
ever  enjoyed  any  degree  of  public  favor,  a  comparatively  small 
space  only  is  needed  to  contain  all  that  is  of  working  interest  to  the 
practical  accountant,  although  the  whole  art  is  one  of  most  fascin- 
ating attractiveness  to  minds  inclined  to  mathematical  and  me- 
chanical investigation.  Babbage's  machine  was  intended  to  per- 
form mathematical  calculations  of  the  highest  class,  cost  a  large 
sum  of  money  and  was  never  completed. 

Edward  Scheutz  of  Stockholm,  exhibited  to  the  Prince  of 
Wales,  June,  1855,  another  machine,  similar  to  Babbage's  in  prin- 
ciple, for  calculating  tables  by  means  of  ratios  or  common  differ- 
ences, which  not  only  made  the  calculations  but  automatically  cast 
stereotypes  of  its  results,  so  that  it  avoided  possible  printer's  errors. 
A  modified  form  of  this  machine  is  said  to  have  been  used  subse- 
quently to  great  advantage  in  producing  a  book  of  logarithms. 

Coming  down  to  less  pretentious  forms  of  calculating  ma- 
chines, there  are  two  generic  types,  those  in  which  index  fingers 
are  set  to  proper  figures  and  a  crank  is  then  turned  by  the  hand  of 
the  operator  to  cause  the  machine  to  go  through  the  movements 
required  to  produce  the  desired  result,  and  those  in  which  the  crank 
is  not  used,  which  are  operated  solely  by  pressing  finger  pieces, 
generally  like  those  of  a  typewriter,  which  indicate  the  nvunbers 
involved  in  the  particular  problem  under  solution.  The  crank  ope- 
rated machines  are  largely  employed  in  the  production  of  actuaries* 
tables,  astronomical  calculations  and  other  operations  involving  a 
great  number  of  figures,  where  they  are  highly  valuable.  They 
are  not,  however,  suitable  for  the  counting  room.  Among  the 
more  prominent  of  these  machines  are  the  Thomas,  a  French  pro- 
duction, improved  and  made  by  Tate,  England;  the  Odhner,  a 
Polish  machine  of  comparatively  small  dimensions ;  one  by  Bald- 
win, St.  Joseph,  Mo. ;  and  one  by  Grant.  Cambridge.  Mass.  In  ad- 
dition to  these  crank  machines  there  have  been  quite  a  number  of 
variously  operated  small  machines,  some  of  which  were  sold  for 
very  small  prices,  none,  however,  having  come  into  sufficient  use 
to  parti cularization  here  needful      The  slide-rule  has  not  been 


374  THE  COMPLETE  COST-KEEPER. 

largely  employed  in  any  of  its  various  forms  as  a  counting  room 
appliance,  because,  although  much  used  in  the  engineering  depart- 
ment of  many  extensive  establishments,  it  has  never  found  ready 
adoption  among  commercial  accountants,  probably  because  of  lim- 
itations in  extent,  and  also  because  the  units  or  final  figure  must 
so  often  be  an  "estimate."  Where  the  problem  contains  several 
places  of  decimals,  as  is  often  the  case  in  the  drawing  room,  the 
exact  value  of  the  final  figure  is  unimportant,  but  such  is  not  the 
case  in  commercial  accounting  where  balances  must  of  course  tally 
to  a  single  cent. 


The  Felt  and  Tarrant  Computing  Machines. 

These  two  machines  are  manufactured  under  patents  granted 
to  Dorr  E.  Felt,  by  the  Felt  and  Tarrant  Mfg.  Co.,  Chicago,  Illi- 
nois, U.  S.  A.  The  simpler  form  of  the  machine  is  named  the 
^'Comptometer,"  and  its  outside  appearance  is  very  clearly  shown 
in  the  engraving  given  herewith.  This  machine  is  made-  with  nine 
rows  of  keys  reaching  away  from  the  operator,  and  eight  rows  of 
keys  crosswise  of  the  machine,  y2  keys  in  all,  handling  all  numbers 
up  to  nine  nines  in  addition,  subtraction,  multiplication  and  divi- 
sion by  simply  striking  the  proper  keys,  the  result  being  instantly 
exhibited  by  the  nine  wheels,  one  character  on  each  of  which  is 
exposed,  in  the  angle  in  front  of  the  machine.  This  is  the  standard 
form,  and  measures  14^  inches  long  by  7^  inches  wide  by  5  inches 
high.  Ten,  twelve  and  sixteen  column  machines  are  also  made, 
the  last  handling  all  numbers  up  to  seventeen  places  of  nines.  The 
Comptometer  simply  exhibits  the  result  of  a  computation  on  the 
wheels  in  front,  and  does  not  make  a  printed  record. 

The  "Comptograph"  adds  and  prints  the  numbers  in  a  list  at 
the  same  time,  and  also  automatically  prints  the  footing  under  the 
list,  the  impression  of  the  footing  being  made  by  pressing  down 
a  knob  at  the  left  side  of  the  machine,  while  any  keys  wrongfully 
struck  can  be  released  and  returned  to  normal  position  by  depress- 
ing the  lever  seen  at  the  right.  The  same  amount  can  be  added 
repeatedly  by  first  striking  the  amount  on  the  keys  and  then  strik- 
ing the  repeater  pawl  lying  flat  on  top  of  the  machine  near  the 
release  key,  which  causes  the  specified  amount  to  be  printed  and 
added  whenever  this  "repeater"  is  depressed.  The  tops  of  the 
first  two  columns  of  keys  are  white  for  cents,  and  those  of  the 


THE  COMPLETE  COST-KEEPER. 


375 


next  three  columns  are  blue  for  the  first  three  columns  of  dollars. 
The  printing  is  done  either  on  the  free  end  of  a  roll  of  paper,  or 
on  an  inserted  slip.  The  Comptograph  finds  large  use  in  banks, 
and  in  all  listing  operations  of  the  counting  room.  Easily  manip- 
ulated attachments  provide  for  rectifying  errors  in  striking  keys, 
for  holding  slips,  as  checks,  in  order  so  as  to  be  conveniently  turned 
while  listing  them,  and  for  handling  the  inking  ribbon. 


The  Felt  and  Tarrant  Comptometer. 

The  Comptometer  is  the  simpler  and  cheaper  of  the  two  ma- 
chines, and  is  of  the  more  general  application.  Each  key  of  the 
Comptometer  in  the  same  crosswise  row  is  marked  with  the  same 
large  number  in  black,  and  to  the  left  of  this  black  numeral  a 
smaller  numeral  in  red  is  placed,  the  sum  of  the  two  numerals  on 
each  key  being  always  nine.    Thus,  each  one  of  the  first  row  of 


376  THE  COMPLETE  COST-KEEPER. 

keys  is  marked  with  a  black  figure  i,  with  a  smaller  red  figure  8 
to  the  right.  Each  key  of  the  second  row  carries  a  black  figure  2, 
and  a  red  figure  7,  making  the  total  nine,  as  before,  and  so  on. 

Addition  is  performed  by  simply  striking  the  keys  represent- 
ing the  different  digits  of  the  numbers  to  be  added,  taking  the 
right  hand  lengthwise  column  as  units,  the  next  column  to  the  left 
as  tens,  and  so  on.  Ciphers  do  not  have  to  be  struck.  Proof  is  had 
in  the  same  manner  as  in  mental  work,  that  is  to  say,  by  repetition. 

For  multiplication  take  example  2253x84 ;  the  key  represent- 
ing the  first  digit  of  the  multiplier,  see  Fig.  3,  which  is  the  right 
hand  key  in  the  four  row,  is  struck  three  times,  because  three  is  the 
units  figure  of  the  multiplicand.  Then  strike  the  tens  key  of  the 
four  line  five  times  because  the  figure  five  is  in. the  ten's  place 
in  the  multiplicand.  Similarly,  strike  the  hundreds  four  key  twice 
and  the  thousands  four  key  twice.  This  multiplies  the  multiplicand 
by  four,  and  it  remains  to  multiply  it  by  80.  This  is  done  by  com- 
mencing with  the  eight  key  in  tens  place,  which  is  struck  three 
times,  the  hundreds  eight  key  being  struck  five  times  and  so  on  as 
before,  giving  by  this  series  of  additions  in  the  proper  column  the 
correct  answer  189252  on  the  registering  wheels  in  front. 

In  addition  and  multiplication  the  black  key  figures  are  used, 
while  in  division  and  subtraction  the  red  figures  only  are  recog- 
nized in  striking  the  divisor  and  subtrahend. 

Division  is  performed  by  first  striking  the  number  to  be  divid- 
ed on  the  keys,  which  causes  this  number  to  show  on  the  register. 
The  divisor  is  then  struck  on  the  keys  by  the  red  numbers,  count- 
ing the  strokes  on  each  key  by  the  numbers  shown  on  the  register 
instead  of  the  figures  on  the  paper  as  in  multiplication.  There  is 
no  guessing  as  to  how  many  times  the  divisor  is  contained  in  the 
partial  dividend  as  in  non-mechanical  division;  all  the  steps  are 
positively  indicated.  The  machine  tells  how  many  times  to  strike 
each  key,  and  exhibits  the  quotient  after  the  keys  have  been  de- 
pressed. 

In  subtraction  the  number  is  first  struck  on  the  machine  with 
the  black  figures,  always  diminishing  the  subtrahend  by  unity,  that 
is,  striking  53  for  54,  147  for  148,  240  for  250  (no  cipher  being 
struck)  and  so  on.  Also,  as  no  keys  have  the  digit  nine  in  red, 
nine  is  never  struck  in  subtracting.  On  the  front  of  the  machine 
a  row  of  "cut  oflFs"  is  placed  above  the  register,  as  shown  in  Figs. 


THE  COMPLETE  COST-KEEPER. 


Z77. 


I  and  3 ;  by  manipulating  these  cut  off s  the  carrying  of  any 
column  to  the  next  can  be  stopped.  These  cut  offs  are  used  in 
subtraction.  Thus  to  subtract  262  from  4,286,  push  back  the  cut  off 
between  the  third  and  fourth  columns  and  strike  261  in  red  charac- 
ters, which  will  g^ve  4,024  on  the  register. 

There  are  other  methods  of  multiplication,  and  the  Compto- 
meter can  also  extract  the  square  root. 

The  methods  employed  in  the  operation  of  the  Comptometer 
are   comparatively    simple.     The  -construction     involves    several 


The  Felt  and  Tarrant  Comptometer. 

schemes  of  a  highly  ingenious  character.  The  first  of  these  in- 
volves a  brake  so  applied  to  the  register  wheels  that  they  cannot 
move  too  far,  and  cannot  move  at  any  time  except  when  they 
should  move,  and  are  yet  left  free  to  move  when  movement  is  de- 
manded. The  second  puzzle  involves  a  system  of  gradually  storing 
power  by  successive  small  increments  taken  from  preceding  key 
actions,  so  that  this  stored-up  power  is  always  available  and  is 
automatically  applied  to  assist  the  comparatively  feeble  finger  ac- 
tion of  the  operator  on  the  keys  when  this  stored-up  power  is 
needed  to  operate  a  series  of  carrying  wheels  simultaneously. 

As  a  matter  of  course  the  machine  demands  the  highest  grade 


378 


THE  COMPLETE  COST-KEEPER. 


The  Felt  and  Tarrant  Comptograph. 
of  materials  and  construction  throughout,  and  involves  a  great 
many  inventions  of  much  subtlety  and  cunning. 

Mr.  Felt  asserts  that  the  Comptometer  is  the  only  machine 
ever  offered  which  adds  more  than  one  column  at  a  time  by  a  key 
action  alone,  and  the  only  machine  which  will  perform  addition 
and  division  by  a  simple  key  action  only,  and  that  it  is  also,  by 
the  action  of  the  brake  mechanism  referred  to,  rendered  both  accu- 
rate and  durable  at  high  speeds.  Mr.  Felt  further  says,  in  refer- 
ence to  the  outcome  of  his  own  labors,  and  with  some  wholly  justi- 
fiable pride  of  achievement : 

"To  make  a  mechanism  in  which  there  are  two  positive  stops 
operating  on  one  numeral  wheel  from  two  distinct  mechanisms, 
and  not  have  the  stop  of  mechanism  interfere  with  the  operation 


THE  COMPLETE  COST-KEEPER.  379 

of  the  wheel  by  the  other  mechanism,  is  not  so  simple  a  problem  to 
solve  as  it  might  appear  at  first  glance,  and  to  add  still  another 
mechanism  to  effect  the  cancelling,  again  utilizing  one  set  of  the 
positive  stops,  complicates  the  problem  still  more. 

All  these  things  are  accomplished  on  the  Comptometer,  by 
what  is  really  a  much  more  simple  mechanism  than  that  in  most 
calculating  machines  which  accomplish  very  much  less. 

The  feature  in  which  the  Comptometer  differs  from  all  other 
adding  and  calculating  machines,  is  in  that  the  rotation  of  the 
numeral  wheels  is  limited  by  positive  stops,  positively  engaging  the 
teeth  of  the  numeral  wheels,  and  effectively  preventing  their  rotat- 
ing too  far,  thus  making  the  speed  at  which  the  wheels  can  be 
accurately  operated  practically  unlimited.  In  the  Comptometer 
which  is  operated  by  a  short  (9-16  inch)  instantaneous  key  stroke, 
a  single  key  is  often  operated  in  regular  work,  such  as  multiplica- 
tion at  the  rate  of  four  hundred  and  five  hundred  strokes  in  a 
minute,  which  turns  the  wheel  three  hundred  and  sixty  to  four 
hundred  and  fifty  revolutions  in  a  minute,  while  in  doing  so,  start- 
ing the  wheel  from  a  dead  stop,  turning  it  9-10  of  one  revolution, 
and  stopping  it  dead  again  from  four  hundred  to  five  hundred 
times  in  a  minute. 

Unless  skillfully  operated,  the  Comptometer  is  useless.  In  this 
respect,  nearly  every  other  calculating  machine  has  the  advantage 
over  the  Comptometer.  On  the  other  hand,  when  skillfully  operat- 
ed, it  is  from  sixty  per  cent,  to  three  hundred  per  cent,  more  rapid 
than  any  other  machine  in  such  other  machines'  own  particular 
specialty,  under  the  most  skillful  handling.  Most  anyone  who  is 
going  to  use  an  adding  or  calculating  machine  is  going  to  use  it 
right  along,  and  therefore  that  which  is  the  most  rapid  and  con- 
venient after  one  is  experienced  in  using  it  is  the  one  which  is  the 
best  in  the  long  run  for  any  purpose,  besides,  all  other  machines 
are  impractical  on  all  except  very  limited  classes  of  work,  no  mat- 
ter how  skillfully  handled. 

The  most  distinct  feature  of  the  Comptometer  is  its  universality 
of  application.  No  other  machine  will  perform  advantageously, 
as  compared  to  the  mind,  more  than  one  or  two  classes  of  compu- 
tations, while  the  Comptometer  when  skillfully  operated,  will  beat 
the  mind  of  the  most  expert  mental  computer,  and  will  beat  any 
other  calculating  machine  on  its  own  particular  specialty. 


38o 


THE  COMPLETE  COST-KEEPER. 


Allen's  Double  Entry  Accounting  Machine. 

This    machine    was 
invented,  designed  and 
patented  by  Mr.   Lei- 
cester Allen,  who  is  a 
mechanician  of  distin- 
guished    ability,     and 
who    was    associate 
editor  of  The  Engin- 
eering Magazine  when 
its  first  number  was  is- 
sued, remaining  in  that 
position  for  a  consid- 
erable period.    Mr.  Al- 
len will  be  recognized 
by    many    readers    of 
mechanical  and  scien- 
tific   newspapers    and 
periodicals  as  the  au- 
thor of  valuable  con- 
tributions to  the  technical   literature  of  his   time.  ' 
There  are  more  than  three  thousand  separate  pieces  in  the 
machine  here  illustrated,  and  it  is  required  to  perform  many  dif- 
ferent functions.    It  will  seem  almost  incredible  to  most  mechanics 
that  the  very  first  machine  of  this  character  ever  constructed 
should  have  performed  all  of  its  functions  perfectly,  and  that, 
put  into  operation  more  than  three  years  ago,  it  should  have  con- 
tinued in  actual  and  active  service  up  to  the  present  date,  with 
every  prospect  that  it  will  continue  in  use  for  many. years  to  come. 
More  than  three  years  ago  one  of  these  machines  was  placed 
on  trial  at  the  Union  Dime  Savings  Institution,  Thirty-second 
Street  and  Broadway,  New  York.     After  a  trial  of  six  months 
duration,  two  more  of  the  machines  were  ordered. 

In  the  winter  of  1899  a  committee  was  appointed  by  the 
trustees  of  the  institution  to  investigate  the  usefulnese  of  the 
machine  and  to  consider  the  desirability  of  continuing  its  use. 

The  officers  of  the  bank,  the  tellers,  the  depositors,  the  inven- 
tor,' patentee,  and  designer  of  the  machine,  the  able  mechanic  who 
constructed  the  machine  from  working  drawings  supplied  by  Mr. 


THE  COMPLETE  COST-KEEPER.  381 

Allen,  the  books  of  the  depositors,  and  the  books  of  the  bank, 
were  all  examined. 

The  result  was  a  report  wholly  favorable  to  the  machine,  and 
a  recommendation  that  a  fourth  machine  be  purchased  to  com- 
plete the  outfit  of  the  bank.  This  machine  is  now  building,  and 
will  soon  be  delivered  at  the  bank. 

The  president  of  the  bank,  in  a  letter  which  we  are  per- 
mitted to  quote,  says: 

"I  consider  the  Allen  Double  Entry  Accounting  Machine  a 
very  valuable  invention.  It  insures  desirable  results  which — with 
less  certainty,  owing  to  human  fallibility — could  be  attained  only 
by  the  employment  of  two  special  clerks." 

(Signed)  Chas.  E.  Sprague,  President. 

The  requirements  which  the  first  machine  was  guaranteed  to 
meet  were  as  follows: 

(a)  It  must  inscribe  or  imprint  on  the  book  of  the  deposi- 
tor the  year,  month,  day  of  the  month,  and  the  amount  of  money 
received  from,  or  paid  out  to,  the  depositor,  the  form  of  this 
imprint  being  as  follows : 

"June  16,  1898,  Received  $**47.86'*;  the  word  "paid"  to  be 
employed  when  payments  are  made,  and  the  word  "received"  to 
be  used  when  money  is  deposited. 

(b)  All  places  for  figures  to  the  left  of  the  significant 
figures  to  be  cancelled  by  some  arbitrary  character.  A  five-point- 
ed star  is  employed  for  this  cancellation. 

(c)  Simultaneously  with  the  printing  of  the  depositor's 
book,  to  make  the  entry  for  the  bank,  consisting  of  the  number 
of  the  depositor's  book,  and  the  amount  credited  or  debited  there- 
on. 

(d)  To  do  this  absolutely,  that  is,  to  provide  mechanism 
whereby  it  is  impossible  to  print  upon  the  depositor's  book  any 
debit  or  credit  without  printing  exactly  the  same  on  the  bank 
record. 

(e)  To  insure  that  the  operation  of  the  machine  shall  not 
absorb  more  time  than  was  required  by  the  inscription  with  the 
pen. 

(f)  To  render  it  impossible,  after  the  book  has  been  placed 
in  the  position  for  printing,  that  the  book  should  be  withdrawn 
without  being  printed. 


382  THE  COMPLETE  COST-KEEPER. 

(g)  To  secure  perfect  vertical  and  horizontal  alignment, 
and  perfect  clearness  and  elegance  in  the  printing,  the  printing 
to  be  done  by  a  steady  impression,  not  a  blow. 

(h)  To  ink  only  the  type  used  in  printing,  and  those  only 
just  before  the  impression  is  made. 

(i)  To  indicate  to  the  operator  before  printing  whether 
or  not  he  has  made  any  error  in  manipulation,  and,  if  so,  enable 
him  to  correct  such  error  before  making  the  imprint. 

(j)  To  supply  a  keyboard  and  key-mechanism  such  that 
the  setting  up  of  the  inscription  need  not  require  the  successive 
operation  of  keys,  as  in  a  typewriter,  but  permit  the  operation  of 
a  number  of  keys  simultaneously,  as  keys  are  operated  simultane- 
ously in  sounding  a  chord  on  a  piano. 

This  requirement  has  been  so  completely  fulfilled  that  an 
inscription  like  the  following: — 

"Jan.  31,  1897,  Received  $1,233.44,"  can  be  imprinted  on  the 
depositor's  book,  while  a  book  number  "543,121,"  as  likewise  the 
amount,  $1,233.44  can  be  imprinted  on  the  bank  record,  by  two 
simultaneous  manipulations  of  keys  which  take  no  more  time  than 
would  be  required  to  strike  twice  two  different  chords  on  a  piano 
keyboard. 

(k)  To  provide  means  whereby  when  the  book  is  placed  in 
the  machine  in  position  for  printing,  the  machine  shall  automati- 
cally print  it  and  positively  stop  its  movement  at  the  instant  after 
the  imprint. 

(1)  To  supply  an  adding  mechanism,  capable  of  registering 
a  total  of  $999,999,999.99,  and  capable  of  continuous  opera- 
tion, adding  each  deposit  or  payment  to  a  previous  grand  total, 
so  that  differences  in  the  totals  of  payments  and  receipts  can  be 
at  any  time  determined  by  a  simple  subtraction  of  the  former 
from  the  latter,  thus  obtaining  at  any  time  a  trial  balance  in  a 
few  seconds. 

(m)     The  machine  not  to  disquiet  the  ear  by  noisy  operation. 

(n)  The  machine  to  be  strong  and  durable,  requiring  only 
occasional  attention  to  secure  its  perfect  operation. 

(o)  The  machine  to  occupy  a  moderate  space,  and  to  be 
capable  of  mo.vement  from  place  to  place  on  the  bank  floor  as  may 
be  required. 


THE  COMPLETE  COST-KEEPER.  385 

(p)  The  machine  to  present  a  neat  and  ornamental  ap- 
pearance in  its  design. 

(q)  The  record  of  the  bank  to  be  under  lock  and  key  so 
that  it  cannot  be  tampered  with  by  any  one  during  the  progress 
of  the  record. 

(r)The  adding  mechanism  also  to  be  under  lock  and  key,  but 
so  arranged  that  its  totals  are  constantly  visible. 

(s)  The  machine  to  be  provided  with  mechanism  whereby 
it  can  be  operated  by  hand  when  its  ordinary  motive  power,  de- 
rived from  an  electric  motor,  small  gas-engine,  or  small  water- 
motor,  is  not  available. 

These  essential  requirements,  and  others  not  considered  as- 
absolutely  essential,  but  highly  desirable,  have  been  met  by  a 
series  of  unique,  original,  and  ingenious  mechanical  devices,, 
which  render  the  machine  one  of  the  most  remarkable  of  modem 
appliances  for  use  in  the  art  of  accounting. 

In  use,  the  depositor  hands  into  the  tellers  window  his  book, 
the  money  he  wishes  to  deposit,  and  a  ticket  stating  the  'amount 
of  the  deposit ;  or  if  he  wishes  to  draw  money  he  hands  in  his 
book  and  the  check  for  the  amount  he  wishes  to  draw.  The  teller 
then  rapidly  manipulates  the  key  mechanism,  places  the  book  in  the 
book-holder  and  slides  the  latter  into  position  for  printing.  The 
impression  is  then  immediately  made.  The  average  time  of  the 
entire  operation  is  about  twenty  seconds. 

The  entries  on  the  bank  record  are  made  on  a  paper  tape, 
giving  the  number  of  the  depositor's  book  and  the  amount,  and 
the  tape  being  locked  in,  the  figures  cannot  be  tampered  with  by 
any  person  except  the  cashier  or  some  one  to  whom  he  may  per- 
mit the  use  of  the  key. 

This  tape  is  removed  at  the  end  of  the  day,  and,  being  sys- 
tematically gummed,  in  columns,  upon  the  pages  of  a  bound  book, 
remains  the  original  and  permanent  record  of  entries,  no  pen 
writing  being  needed  or  allowed  in  keeping  this  record.  Being 
ink-printed,  the  figures  are  plain,  perfect,  and  in  direct  alignment. 
This  permanent  record  is  convenient,  absolutely  accurate,  and 
every  way  acceptable. 

The  machine  may  be  operated  by  a  small  gas-engine  or  an 
electric  motor,  or  by  a  small  water-motor,  or  by  hand,  very  little 
power  being  required,   and  the   following   results  are  insured: 


384  THE  COMPLETE  COST-KEEPER. 

1.  Absolute  coincidence  of  entries  in  depositors'  books  and 
the  first  entries  on  the  bank  record,  the  personal  factor  being 
eliminated. 

2.  An  ever-present  facsimile  of  the  entries  in  every  depo- 
sitor's bank-book. 

3.  Perfect  legibility  and  alignment. 

4.  Saving  in  time  and  clerk-hire. 

5.  Convenience  in  being  able  to  verify  the  cash-account  in- 
stantly at  closing  hour,  or  to  trace  any  errors  that  may  have 
occurred  to  the  exact  depositors'  accounts  wherein  such  errors 
have  been  made,  at  once,  instead  of,  as  heretofore,  waiting  for 
the  book  wherein  an  erroneous  entry  has  been  made  and  inten- 
tionally or  carelessly  taken  away  by  a  depositor,  to  reappear  at 
the  bank  before  the  error  can  be  located. 

6.  For  the  first  time  in  the  history  of  banking  it  is  now 
possible  for  a  bank  inspector  to  know  what  the  tellers  of  a  bank 
have  made  the  bank  liable  to  pay  by  what  they  have  entered  in 
the  depositors'  books.  Hitherto  an  inspector  has  been  able  to  see 
only  the  records  of  the  bank,  not  the  records  in  the  books  of  its 
depositors,  and  the  latter  may  show,  and  sometimes  have  shown, 
liabilities  in  excess  of  what  is  indicated  on  the  books  of  the  bank, 
the  excess  having  been  appropriated  by  a  defalcator.  The  exact 
conicidence  of  entries  compelled  by  the  use  of  this  ingenious  ma- 
chine is  therefore  a  new  and  important  safeguard  in  the  business 
of  banking. 

All  that  is  necessary  to  apply  this  machine  to  the  use  of  na- 
tional banks  is  the  numbering  of  the  accounts.  This  done,  depo- 
sitors' books  are  treated  in  the  same  way  as  the  books  of  depo- 
sitors in  savings  banks,  while  all  vouchers,  checks,  drafts,  notes, 
etc.,  will  have  the  number  of  the  account  to  which  they  are  to  be 
charged  printed  or  stamped  upon  them  prior  to  their  presentation 
for  payment,  and  will  then  be  treated  in  the  same  way  as  the 
depositor's  book  at  a  savings  bank,  that  is  to  say,  the  inscription 
of  date  and  amount  paid  upon  the  voucher  by  the  paying  teller 
will  be  imprinted  upon  the  voucher,  and  simultaneously  therewith 
the  number  of  the  account  and  the  amount  debited  to  it  will  be 
printed  upon  the  primary  record  of  the  institution. 


THE  COMPLETE  COST-KEEPER. 


385 


The  Adder,  Webb's  Adding  Machine. 

The  Adder  is  an  instrument  for  adding  one,  two  or  three 
columns  at  a  time,  the  tofal  amount  appearing  in  a  space  on  the 
face  of  the  machine,  where  it  can  be  easily  read. 

As  shown  in  the  accompanying  illustration,  this  machine  con- 
sists of  two  metal  disks,  joined  together,  about  two  and  four 
inches  in  diameter,  respectively,  the  larger  one  for  units  and  tens, 
the  smaller  to  be  used  when  three  columns  are  to  added.  The 
method  of  operation  is  as  follows :  The  zero  on  the  inner  revolv- 
ing part  of  the  disk  is  brought  opposite  the  zero  on  the  outer  part. 
A  point,  or  pin,  is  then  inserted  in  the  small  hole  opposite  the 
figures  corresponding  to  the  first  number  to  be  added,  and  the 
inner  disk  turned  in  a  clockwise  direction  until  arrested  by  the  stop 
at  the  outer  zero  mark.  The  same  process  is  repeated  for  all  the 
succeeding  numbers,  and  the  sum  total  appears  in  the  slot  between 
the  large  and  small  disks.  When  three  columns  are  to  be  added, 
the  small  dial  is  used  for  the  hundreds  and  the  large  one  for  tens 
and  units. 

This  machine  is  sold  by  E.  R.  Beach. 


WORKMEN'S  TIME  RECORDERS. 


The  Rochester  Card  Recorder. 

The  principal  feature  of  the  Rochester  Time  Recording  Sys- 
tem is  the  clock  with  its  recording  mechanism.  The  clocks  used 
have  the  best  movement  that  can  be  made,  and  their  reputation  as 
time-keepers  is  world-wide.  The  clock-case  is  ornamental  and  is 
made  in  the  most  thorough  manner,  and  in  its  lower  part  is  the 
recording  mechanism,  which  is  very  simple  and  contains  nothing 
that  will  get  out  of  order  with  anything  like  fair  usage.    The  print- 


The  Rochester  Card  Recorder. 

ing  wheels  are  engraved  out  of  solid  steel,  and  are  practically  in- 
destructible. The  mechanism  is  automatic,  and  the  clock  requires 
winding  only  once  a  week. 

On  either  side  of  the  clock  is  a  rack  with  numbered  pockets^ 
each  pocket  representing  a  workman.  At  the  beginning  of  the 
week,  cards  are  made  out,  bearing  not  only  each  person's  number, 
but  also  his  name,  and  are  placed  in  one  of  the  racks,  which  is  call- 
ed the  "out"  rack.    These  cards  serve  for  the  entire  week. 

Upon  his  arrival  each  employee  takes  his  card  from  the  "out" 
rack,  drops  it  into  a  slot  in  the  lower  front  of  the  clock-case,  and 


THE  COMPLETE  COST-KEEPER. 


387 


Week  ending    m't.*<><    %>i%^S 

No 239 

Name. 

Day                       In 

LOST    TIME 

Total, 

OUT    1      IN 

M 

-mi 

1   ■  112?° 

s 

"•-  \\i\\ 

!6r 

,^ 

T 

"-  60 

!     !l2s 

s 

"•'•  121! 

1              r 

1          Oil 

.r 

W 

--■I6l^i  ■•!-  -!l2il.r 

"•-  12!?      i     ■'X^  ii. 

T 

*•"  60    i     m 

s 

P.M. 

121? 

i       16^ 

,r 

F 

A.  M. 

730 
/  31 

1     1121 

/^< 

P.M. 

1 

1 

S 

AM.      gsi 

Il2i. 

,'r 

-*•  li 

!6^ 

.-r 

S 

A.M. 

i      1 

P.  M.                   I              '                               1 

Total  Time 

.....vr..>r.... 

hrs. 

Rate^ 

j^sy. 

0  * 

Total 

wa^es  for  week,  $...J..\£?.^^^ 

V 

Rochester  Card. 


"Rochester"  and  "Bundy' 


6 

45 

56 

6 

49 

25 

6 

^1 

98 

7 

1 

87 

7 

4 

124 

♦12 

1 

98 

♦  12 

1 

87 

*12 

3 

124 

^12 

4 

56 

*12 

7 

25 

12 

60 

124 

12 

52 

98 

12 

55 

87 

12 

&« 

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1 

3 

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5 

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«  A 

10 

124 

HAM  »T 

INTERNATIONAL 
TIME  RECORDING  Ca 

NEW  tORK. 

Records. 

388  THE  COMPLETE  COST-KEEPER. 

pushes  down  a  lever  at  the  lower  right-hand  corner  of  the  case 
until  a  bell  rings.  By  this  operation  the  printing-wheels  are 
brought  into  action,  and  the  exact  time  is  recorded  in  the  proper 
space  on  the  card,  which  is  then  taken  out  and  deposited  in  its 
proper  place  in  the  opposite,  or  "in"  rack.  The  record  can  thus 
be  verified  each  time  by  the  employee  as  soon  as  it  is  made,  and 
as  the  line  of  workmen  is  constantly  and  rapidly  moving  from  one 
card  rack  to  the  other,  very  little  time  is  occupied  in  registering. 

Whenever  a  workman  leaves  the  factory,  he  takes  his  card 
from  the  "in"  rack,  registers  at  the  clock  and  places  the  card  in  the 
"out"  rack,  so  that  this  system,  besides  giving  an  exact  record  of 
the  times  of  arrival  and  departure,  enables  any  one,  by  glancing  at 
the  racks,  to  ascertain  if  a  workman  is  in  or  out  of  the  shop. 

The  bottom  of  the  slot  or  card  receiver  in  the  clock-case  rises 
automatically  one  space  on  the  card  every  twelve  hours,  so  that  the 
card  will  drop  only  to  its  proper  space,  thus  making  it  impossible 
for  a  person  who  is  absent  any  part  of  one  day  to  record  the  lost 
time  the  next  day. 

The  cards  thus  stamped  form  a  permanent  record  in  them- 
selves, and  at  the  end  of  the  week  are  filed  away  where  they  can  be 
referred  to  instantly  when  wanted.  This  system  requires  no  trans- 
ferring of  records,  thus  guarding  against  errors  and  making  a 
great  saving  of  labor  in  the  office ;  and  the  workman's  record  is  so 
easily  examined  by  his  employer  that  there  is  a  great  promotion  of 
promptness  and  regularity.  The  card  system  is  so  elastic  that  there 
is  no  record  that  a  person  desires  but  what  may  be  made  on  this 
machine.  For  keeping  cost,  the  card  furnishes  one  of  the  best 
records  that  can  be  had.  For  doing  this,  a  card  is  used  for  each 
job  worked  on,  and  on  which  the  workman  records  the  time  that 
he  begins  and  quits  the  job  each  day.  At  the  end  of  the  day,  there 
is  a  card  for  each  operation  and  the  total  number  of  hours  on  the 
several  cards  must  equal  the  amount  of  time  recorded  on  the  weekly 
ticket. 

People  who  are  using  this  system  for  this  purpose  claim  it  to 
be  the  simplest,  the  most  accurate  and  reliable  way  of  getting  cost 
it  is  possible  to  devise. 

This  apparatus  is  manufactured  by  the  International  Time 
Recording  Company,  of  New  York. 


THE  COMPLETE  COST-KEEPER. 


389 


The  Bundy  Time  Recorder. 
With  the  Bundy  system,  the  record  is  made  on  a  paper  ribbon 

contained  within  the  clock-case,  and  the  registering  mechanism  is 
actuated  by  inserting  a  key  in  a  hole  in  the  lower  part  of  the  case 
and  giving  it  a  quarter  turn. 

Each  employee  is  given  a  numbered  key,  which,  at  the  begin- 
ning of  the  day,  hangs  upon  the  "out"  rack  placed  at  one  side  of 
the  clock.     When  the  workman  arrives  in  the  morning  he  takes 


The  Buxdy  Time  Recorder. 
his  key  from  the  "out"  rack,  inserts  it  in  the  proper  place  in  the 
recorder  and  gives  a  quarter  turn,  thus  registering  the  time  and 
his  number  on  the  paper  ribbon  within  the  case.    He  then  hangs 
the  key  on  the  "in"  rack,  on  the  opposite  side  of  the  clock. 

When  he  goes  out,  he  takes  the  key  from  the  "in"  rack,  regis- 
ters, and  hangs  it  on  the"out"  rack,  but  while  registering,  the 
lower  lever  at  the  left  of  the  clock  is  held  down,  thereby  printing 
a  star  opposite  the  figures  showing  the  time  of  departure. 

At  each  registration  a  bell  rings,  which  attracts  attention  at 
once  to  the  act  of  registering,  and  as  this  would  be  distinctly  heard 
by  the  employees  going  to  and  fro  from  the  recorder,  any  attempt 
on  the  part  of  a  workman  to  register  for  another  would  be  frus- 
trated. 

The  time  recorders,  one  of  which  is  shown  in  the  accompany- 
ing illustration,  are  placed  at  convenient  points  near  the  entrances 
to  the  factory,  or  in  the  departments  where  the  employees  work. 


390  THE  COMPLETE  COST-KEEPER. 

In  the  latter  case  the  record  can  be  made  of  the  time  when  the 
men  actually  begin  and  finish  their  work,  thus  saving  the  time  that 
is  lost  in  going  from  the  entrance  to  the  place  of  work. 

The  printed  record,  which  is  accessible  only  to  the  person 
having  the  key  that  opens  the  clock,  may  be  taken  out  every  night, 
or  as  often  as  desired,  and  from  it  the  actual  time  of  service  of 
every  employee  noted  on  the  time  book. 

It  may,  perhaps,  be  mentioned  that  among  the  other  large 
establishments  using  the  Bundy  Time  Recorder  is  the  Post-Office 
Department  of  the  United  States,  and  carriers  and  clerks  in  all 
free  delivery  post-offices  throughout  the  country  have  their  time 
kept  by  this  system. 

The  Bundy  Time  Recorder  is  manufactured  by  the  Interna- 
tional Tim.e  Recording  Company,  of  New  York. 

The  Standard  Automatic  Time  Stamp. 

The  Standard  Automatic  Time  Stamp  is,  in  appearance,  like 
a  mantel  clock,  with  a  stamping  arrangement  on  top.  Anything 
on  which  the  time  is  to  be  marked  is  simply  placed  on  the  printing 
wheels  and  the  stamp  is  then  pushed  down.  The  impression  is 
clearly  made  in  plain  type  and  in  straight  lines,  and  the  correct 
current  date  and  time,  down  to  the  minute,  is  printed. 

Besides  the  date  and  time,  the  stamp  can  be  made  to  record 
the  name  of  a  firm  or  company  and  its  business  address,  and  six 
words  (such  as  "answered"),  describing  particular  transactions, 
can  be  brought  into  use  by  turning  either  of  two  projecting  knobs. 
The  figures  and  letters  on  the  six  wheels  of  the  stamp  train  are 
engraved  in  the  solid  metal,  which  secures  a  superior  impression 
and  great  durability. 

The  time  mechanism  is  entirely  separate  from  the  printing 
wheels,  and  cannot  be  affected  by  any  amount  of  use.  The  month, 
day  and  time  are  set  automatically  at  the  proper  moment.  This 
includes  the  automatic  setting  of  the  first  day  of  a  new  month  for 
a  long  or  short  month,  and  even  for  February  of  a  common  and  a 
leap  year. 

The  type  wheels  are  continuously  and  positively  locked,  which 
absolutely  prevents  their  being  tampered  with  by  unauthorized 
persons,  or  shifted  while  the  impressions  are  being  made.  The 
mechanism  requires  n6  attention  but  winding  once  a  week. 

The  Standard  Time  Stamp  is  manufactured  by  the  Interna- 
tional Time  Recording  Company,  of  New  York. 


THE  COMPLETE  COST-KEEPER. 


391 


The  Chicago  Time  Recorders. 

The  Chicago  Time  Register  Company  manufacture  both  a 
numerical  (or  key)  and  an  autograph  recorder.  Their  distinctive 
feature  is  the  sight  opening,  where  the  record  appears  to  view  the 

instant  a  man  registers.  The  re- 
cords  are  made  on  a  strip  or  ribbon 
of  paper  in  the  clock  case,  but  at 
the  moment  of  registering,  the 
time  is  printed  in  plain  view  oppo- 
site an  employees's  name  or  num- 
ber. This  does  away  with  all  dis- 
putes about  time,  for  should  a 
workman  question  the  correct- 
ness of  the  time  credited  to  him, 
the  bookkeeper  can  show  the 
record  made  by  the  workman  him- 
self, and  inspected  by  himself 
when  it  was  made. 

An  even  more  important  result 
is  that  with  the  Chicago  Recorder, 
every  workman  becomes  a  check 
on  the  accuracy  of  the  machine 
and  its  proper  operation,  so  that 
an  erroneous  record  made  because 
of  any  failure  of  the  machine 
whatever,  is  certain  to  be  at  once 
detected,  and  may  be  corrected.  If, 
on  the  contrary,  the  record  be  hid- 
den within  the  clock  case,  any 
errors  would  most  likely  remain 
undiscovered  until  the  end  of  the 
day,  or  even  the  end  of  the  week, 
when  it  would  be  impossible  to 
to  correct  them.  These  recorders, 
then,  produce  an  absolutely  indis- 
putable and  legal  record.  The  manner  of  operating  the  Chicago 
recorders  is  very  simple. 

The  numerical,  or  key  recorder,  is  operated  by  inserting  a 


392  THE  COMPLETE  COST-KEEPER. 

numbered  key,  each  workman  having  his  special  one,  and  giving 
it  a  sHght  push,  when  the  bell  rings  and  the  record  appears  in  full 
view.  They  key  need  not  be  turned,  which  operation  would  take 
time  and  might  cause  trouble.  On  either  side  of  the  recorder  is 
placed  a  key  board,  denoted,  respectively,  the  "out"  and  the  "in" 
board.  Upon  his  arrival,  the  workman  takes  his  key  from  the 
"out"  board,  registers,  and  hangs  it  upon  the  "in"  board.  When 
he  goes  out,  the  key  is  transferred,  by  way  of  the  register,  from 
the  "in"  to  the  "out"  board,  so  that  a  glance  at  the  boards  will  tell 
whether  a  man  is  in  or  out. 

The  autograph  recorder  requires  the  employee  to  sign  his 
name  on  the  record  sheet,  which  appears  in  a  space  in  front  of  the 
lower  part  of  the  clock  case.  The  wrist  support  upon  which  he 
rests  his  hand  when  writing  his  name  is  thereby  lowered,  and,  after 
the  writing  is  finished  and  the  hand  withdrawn,  automatically 
prints  the  time  opposite  his  name,  in  full  view.  There  is  no  lever 
of  any  kind  to  turn  in  order  to  register. 

As  a  result  of  this  simple  manner  of  operation,  these  machines 
register  with  great  rapidity.  The  material  used  in  their  construc- 
tion is  the  best  of  its  kind ;  the  clock  movement  being  the  Seth 
Thomas. 

Employer's  Time  Recorder,  Morse  System. 

This  time  recorder  consists  of  a  regulator  clock,  with  the  re- 
cording mechanism  in  the  lower  part  of  the  case.  There  are  no 
keys  used,  but  on  the  front  of  the  clock  are  numbered  knobs,  one 
for  each  employee,  which  the  workman  turns  halfway  round 
when  he  enters  or  leaves.  This  turning  of  the  knobs  punches  a 
hole  in  the  record  sheet. 

This  machine  is  time-saving,  because  the  workmen  can  regis- 
ter while  passing  and  without  pause.  Six,  eight  or  ten  persons 
may  record  simultaneously  going  both  ways,  if  desired. 

The  position  of  the  knobs  on  the  face  of  the  instrument  always 
shows  at  a  glance  exactly  who  is  in  and  who  out,  and  the  record 
may  also  be  seen  on  the  paper  without  opening  or  touching  the 
machine. 

Whether  it  is  designed  to  use  one  of  these  machines  in  each 
department  of  the  establishment,  one  for  each  building,  or  all  of 
them  at  the  entrance,  does  not  matter,  as  any  arrangement  that  is 
most  convenient  can  be  made.     It  would  take  five  machines  to 


THE  COMPLETE  COST-KEEPER, 


393 


The  "Morse"  Employer's  Time  Register. 


394  THE  COMPLETE  COST-KEEPER. 

record  one  thousand  people,  and  a  thousand  eould  register  just  as 
quickly  as  a  hundred,  for  the  machine  will  not  delay  them.  In 
actual  service,  one  of  these  machines  has  recorded  96  people  "out" 
in  46  seconds. 

Of  course  employees  do  not  arrive  and  depart  in  the  order  of 
their  numbers,  but  the  record  comes  out  as  though  they  registered 
in  I,  2,  3  order,  so  that  it  is  the  work  of  an  instant  to  note  the  late 
or  absent  ones. 

The  record  of  a  day  for  the  entire  force  appears  upon  the 
sheet  like  a  ledger  page,  showing  the  exact  time  of  arrival  and 
departure  of  each  employee  opposite  his  own  number,  without  any 
copying  whatever,  so  that  a  daily  pay-roll  for  500  employees  may 
be  made  up  in  fifteen  or  twenty  minutes.  The  record  is  at  once 
so  compact,  simple  and  complete  that  the  manager  or  proprietor 
may  himself  check  off  the  pay-roll,  or  gain  information  about  the 
promptness,  absence  or  lateness  of  any  employee  at  a  glance. 

This  recorder  is  manufactured  by  the  American  Watchman's 
Time  Detector  Company. 

The  Burrough's  Registering  Accountant. 

The  Burrough's  Registering  Accountant  is  a  machine  for 
printing  columns  of  figures,  and  adding  them  mechanically. 

The  operation  of  the  machine  is  simple.  The  keys  being  ar- 
ranged in  regular  order  from  i  to  9  in  each  column,  and  there  being 
but  nine  different  characters  or  figures,  no  such  difficulty  is  ex- 
perienced as  in  learning  to  operate  a  typewriter.  The  keys  corres- 
ponding to  the  amount  to  be  recorded  are  struck,  and  the  actual 
printing  on  a  sheet  of  paper  at  the  back  of  the  machine  is  then 
done  by  pulling  the  lever  at  the  side.  The  increasing  total  of  the 
columns  is  progressively  registered  in  the  machine;  so  that  when 
it  is  desired  to  find  the  sum  of  the  figures  at  any  point,  an  extra 
key  is  pressed  and  the  total  amount  recorded  at  the  foot  of  the 
columns. 

Errors  on  the  part  of  the  operator  in  striking  the  wrong  keys 
will  be  noticed  instantly,  as  the  keys  when  struck  remain  down 
till  the  lever  is  pulled,  thus  affording  the  operator  an  opportunity 
to  be  certain  the  proper  keys  are  down  before  the  amount  is  print- 
ed.   If  any  keys  have  been  struck  in  error,  the  correction  can  be 


THE  COMPLETE  COST-KEEPER. 


395 


made  before  printing.  The  keys  may  be  struck  in  any  order,  and 
any  number  of  keys  at  the  same  time. 

The  parts  of  this  machine  are  all  interchangeable,  and  there 
are  no  adjustments  of  any  kind,  so  that  new  parts  may  be  sub- 
stituted for  worn  or  broken  ones  by  any  mechanic  of  ordinary 
ability,  and  repairs  can  easily  be  made. 

This  machine  is  made  by  the  American  Arithmometer  Co. 


The  Dey  Time  Register. 
The  Dey  Time  Register  Company  manufactures  a  form  of 
time  recorder,  as  shown  in  the  accompanj-ing  illustration.  This 
machine  is  extensively  used  in  many  important  establishments,  es- 
pecially in  connection  wnth  department  work ;  the  machines  being 
placed  in  the  work  rooms,  and  thus  recording  the  time  of  actual 
appearance  of  tfie  employee  at  his  work,  and  not  his  mere  entrance 
at  the  gate  of  the  establishment. 


396 


THE  COMPLETE  COST-KEEPER. 


The  Prentice  Synchronizing  System. 


For  many  purposes  it  is  desirable  to  have  a  number  of  clocks 
maintained  at  exactly  the  same  time,  and  for  this  service  the  Pren- 
tice system  has  been  devised. 

The  illustration  shows  a  plant  of  four  synchronized  clocks, 
two  with  calendars  and  two  without.  The  large  clock  on  the  left 
is  a  regulator  and  acts  as  a  master  clock.  The  three  other  clocks 
are  sub-clocks  and  are  synchronized  every  hour  by  the  master 
clock.  It  will  be  seen  that  all  the  clocks  are  connected  in  series, 
that  is,  that  the  wire  runs  to  each  in  turn  and  then  to  the  battery 
and  back  again  to  the  master  clock.  The  clock-movement  in  the 
right  hand  lower  corner  shows  a  synchronizer  attached  to  it.  As 
will  be  seen,  it  consists  of  a  lever  and  detent  adapted  to  be  drawn 
down  by  means  of  the  electro-magnet,  the  detent  when  down  en- 
gaging with  a  toothed  disk  mounted  o.i  the  arbor  of  the  escape 
wheel  and  in  this  way  causing  the  train  of  the  clock  to  stand  still 
though  the  pendulum  continues  to  swing.  The  hour  arbor  of  the 
clock  carries  a  cam,  one-half  of  whose  circumference  is  somewhat 
less  in  diameter  than  the  remaining  portion.     When  the  larger 


THE  COMPLETE  COST-KEEPER.  2>97. 

portion  is  opposite  the  lever-arm,  the  latter  is  completely  blocked 
so  that  no  action  of  the  armature  of  the  magnet  can  take  place  and 
the  detent  cannot  be  made  to  lock  the  train  of  the  clock.  This 
position  indicates  a  slow  clock ;  but  when  the  reverse  side  of  this 
cam  is  opposite  the  lever  arm,  the  armature  is  free  to  move,  and  if 
the  magnet  be  energized  now,  the  detent  will  be  brought  down  so 
as  to  lock  the  wheels  of  the  train  and  stop  the -clock  for  a  few 
seconds.  It  is  this  cam  on  the  centre  arbor  of  the  sub-clock  which 
determines  whether  it  shall  be  held  one  second,  or  ten,  or  shall 
not  be  stopped  at  all.  When  a  sub-clock  is  correct  and  needs  no 
synchronizing  it  will  be  seen  that  the  passing  of  the  cam  from  the 
high  to  the  low  part,  and  the  consequent  releasing  of  the  lever 
which  permits  the  armature  to  act,  is  simultaneous  with  the  open- 
ing of  the  circuit  by  the  master  clock  and  that  therefore  no  effect  is 
produced.  Should  the  sub-clock,  however,  be  the  least  particle 
fast,  it  will  reach  the  full  hour  first,  the  high  part  of  the  cam  will 
have  passed  by  and  the  magnet  will  then  have  a  chance  to  act. 
The  detent  is  at  once  forced  into  the  toothed  disk,  the  motion  of 
the  train  arrested  and  the  hands  of  the  sub-clock  stand  still,  indicat- 
ing the  full  hour,  and  remain  so  till  the  master  clock  has  reached 
the  exact  hour  and  has  broken  the  circuit.  The  synchronizer  then 
unlocks  and  the  sub-clock  starts  off  exactly  with  the  master  clock. 
The  Self  Winding  Clock  Company^s  Progr.\mme  Clock 

This  programme  instrument  is  operated  by  a  self  winding 
clock  movement,  which  is  arranged  with  contacts  to  move  the 
cylinders  in  the  programme  instrument,  and  close  an  electric  cir- 
cuit for  ringing  signal  bells.  The  cylinders  are  arranged  with 
holes,  corresponding  to  every  minute  of  the  twenty-four  hours, 
into  which  small  plugs  are  screwed  to  conform  with  the  pro- 
gramme it  is  desired  to  ring. 

By  a  simple  arrangement  the  instrument  is  made  to  run  quietly 
during  the  night,  taking  up  the  day  programme  each  morning  at 
a  predetermined  time.  An  attachment  may  also  be  provided  for 
ringing  an  entirely  independent  programme  on  any  day  of  the 
week,  without  changing  the  arrangement  of  plugs  each  time.  All 
this  is  done  automatically. 

The  apparatus  is  simple  in  construction  and  all  its  parts  are 
interchangeable.  The  bells  may  be  rung  at  intervals  of  one 
ipinute  or  less,  and  the  programme  may  be  readily  changed,  as 


398  THE  COMPLETE  COST-KEEPER. 

often  as  desired,  without  in  any  way  interfering  with  the  clock 
movement. 

A  high  grade  regulator  may  be  used  to  operate  the  instrument,, 
thereby  combining  a  fine  regulator  and  programme  clock. 

Frick's  Automatic  Programme  Clock. 

This  clock  has  a  mechanism  by  which  signals  are  made  in 
various  parts  of  an  establishment  according  to  a  pre-arranged  pro- 
gramme. 

The  clock  itself  is  a  high  grade  time-piece,  and  the  programme 
apparatus  is  mounted  below  the  clock  dial,  where  it  is  readily  ac- 
cessible for  setting  and  changing  the  programmes.  It  has  its  own 
motive  power,  and  by  a  simple  device  is  governed  by  the  regulator, 
thus  leaving  the  latter  unincumbered  with  any  mechanism  to  im- 
pair its  time-keeping  qualities.  No  delicate  or  complicated  parts 
are  used.  The  programme  apparatus  is  provided  with  contact 
pieces  which  complete  electric  circuits  at  stated  times  and  so  send 
out  the  signals  which  are  rung  on  bells  at  any  desired  points.  The 
current  is  furnished  by  electric  batteries.  This  apparatus  can  be 
set  up  and  easily  altered  as  required. 

As  there  are  different  classes  of  programme  signaling,  these 
clocks  are  furnished  in  several  varieties,  each  kind  being  adapted 
to  a  particular  classs  of  work. 

There  is  the  multa-programme  clock,  which  gives  different 
programmes  in  different  rooms,  departments  or  buildings  at  the 
same  time,  each  programme  having  its  periods  set  without  refer- 
ence to  the  others,  and  on  any  periods  divisible  by  five  minutes — 
though  special  apparatus  will  be  furnished  whose  periods  are  divis- 
ible by  two  and  one-half  minutes. 

The  periods  of  all  programmes  may  be  changed  Avhenever 
desired,  and  changing  the  periods  of  any  programme  does  not 
affect  the  other  programmes.  The  various  programmes  are  each 
rung  on  a  separate  bell  or  set  of  bells,  the  different  bells  or  sets 
being  placed  in  the  respective  departments  they  are  to  regulate. 

An  automatic  cut-out  silences  the  bells  at  night,  and  from  the 
close  of  the  week's  work  until  Monday  morning,  when  the  clock 
automatically  takes  up  another  week's  work.  It  can  be  set  to 
silence  the  bells  on  any  days  and  nights  of  the  week  and  to  ring 
them  on  particular  days  only.  The  duration  of  signals  is  regu- 
lated in  an  instant  to  meet  all  practical  requirements.     When  re- 


THE  COMPLETE  COST-KEEPER. 


399 


quired,  there  is  furnished,  instead 
of  the  automatic  cut-out,  a  hand 
cut-out  which  must  be  moved 
every  evening  to  silence  the  bells  at 
night,  and  again  in  the  morning,  to 
make  them  operative.  A  cut-out 
can  also  be  placed  in  each  room, 
by  which  the  signals  there  can  be 
thrown  in  or  out  of  circuit,  at  will. 

The  automatic  calendar  switch 
clock  is  used  where  the  pro- 
grammes vary  from  day  to  day. 
The  programmes  for  the  different 
days  are  set  independent  of  each 
other  and  can  be  changed  when- 
ever desired. 

These  clocks  are  furnished  ei- 
ther key  or  self-winding. 

The  Frick  programme  clock 
may  be  fitted  with  a  circuit  closer 
for  operating  secondary  clocks 
once  every  minute.  Any  number 
of  secondary  clocks  may  be  thus 
operated  in  unison  with  the  regu- 
lator, securing  uniform  time 
throughout  the  plant.  With  this 
apparatus  there  is  an  electric  gauge 
and  a  detector  clock.  The  elec- 
tric gauge  shows  the  condition  of 
the  current  once  every  minute. 
The  detector  clock  runs  in  unison 
with  the  regulator  and  secondary 
clocks,  but  is  so  constructed  that 
it  requires  a  slightly  stronger 
current  to  operate  it  than  is 
needed  for  the  secondary  clocks. 
When  the  current  weakens,  but 
before  growing  weak  enough  to 
cause  failure  of  any  of  the  second- 
ary clocks,  the  detector  clock  will 


400  THE  COMPLETE  COST-KEEPER. 

stop,  indicating  that  the  battery  should  be  looked  after.  In  addi- 
tion to  the  electric  gauge  and  the  detector  clock,  an  alarm  gong 
is  placed  under  the  regulator  dial  and  strikes  every  minute  after 
the  detector  stops,  thus  giving  audible  notice  of  the  condition  of 
the  current,  so  that  with  the  regulator  fitted  in  this  way  it  is 
almost  impossible  to  have  a  failure  of  the  system.  The  simple 
battery  furnished  for  operating  the  secondary  clocks  will  run  for 
over  a  year  with  one  charge. 

The  Self  Winding  Clock  Companv's  Synchronizing  System. 

While  the  clocks  of  this  company,  by  reason  of  their  method 
of  regular  and  uniform  winding,  are  most  accurate  time-keepers, 
in  order  to  secure  absolute  uniformity  of  time  between  any  num- 
ber of  clocks,  they  are  connected  in  circuit  with  a  standard  or  mas- 
ter clock,  which,  at  predetermined  intervals,  sends  a  signal  that 
temporarily  controls  the  hands  of  all  clocks  in  the  circuit.  To 
secure  the  correctness  of  this  time,  the  master  clock  is  connected 
with  the  Western  Union  Telegraph  Company's  time  service  system, 
and  corrected  by  the  signal  sent  out  daily  at  noon  from  the  United 
States  Naval  Observatory  at  Washington. 

This  system  embraces  the  Gardner  synchronizing  and  time 
signalling  patents. 

The  Eco  Magneto  Watchman's  Clock, 
In  this  system,  the  watchman's  recorder,  either  alone  or  in 
combination  with  an  "office  regular"  clock,  is  placed  in  the  office, 
and  stations  are  located  at  such  points  throughout  the  building 
or  premises  as  the  watchman  is  required  to  visit. 

In  the  recorder,  a  circular  dial  of  paper,  divided  by  radial 
lines  corresponding  to  hours  and  fractions,  is  carried  around  by 
clockwork.  The  dial  is  also  divided  into  rings  by  concentric  cir- 
cles, each  ring  corresponding  with  a  station.  Any  number  of 
watchmen  can  record  at  the  same  time  and  on  the  same  dial,  and 
each  man's  record  will  be  independent  of  the  others. 

The  records  are  made  by  means  of  needles  actuated  by  electro- 
magnets. These  electro-magnets  are  all  independent,  and  each  is 
in  circuit  with  one  of  the  stations.  Number  i  station  is  connected 
to  the  magnet  which  operates  number  i  needle,  and  the  record 
will  be  a  puncture  through  the  paper  in  ring  number  i  at  the  time 
the  magneto  at  the  station  is  operated.    Station  number  2  will  re- 


THE  COMPLETE  COST-KEEPER. 


401 


cord  in  ring  number  2,  and  so  on  for  as  many  stations  as  may  be 
used. 

At  each  of  the  stations  is  placed  a  small  magneto-machine, 
similar  to  those  which  are  put  on  telephones  to  ring  the  bell.  When 
the  watchman  inserts  his  key  in  the  case  enclosing  the  magneto, 
and  gives  it  one  full  turn,  he  makes  the  armature  of*  the  magneto 
revolve  very  rapidly.  This  generates  a  current  which  energizes 
the  corresponding  electro-magnet  at  the  recorders,  and  the  needle 
thereupon  perforates  the  paper  dial. 

This  method  of  operation  dispenses  entirely  with  a  chemical 
battery,  which  latter,  besides  being  an  annoyance,  is  a  source  of 
expense  in  replenishing  and  keeping  in  order. 

With  the  Eco  magneto  system  there  is  no  chance  of  manipula- 
tion by  unfaithful  watchmen,  for  the  vibratory  motion  of  the  per- 
forating needle  could  not  be  imitated  by  hand,  even  if  the  watch- 
men should  gain  access  to  the  clock ;  nor  can  any  short-circuiting 
or  crossing  of  the  wires  make  a  record,  as  there  is  no  current  on 
the  line  except  at  the  time  when  the  magneto  is  turned. 


402  THE  COMPLETE  COST-KEEPER. 

The  watchman's  records  can  therefore  be  made  only  from 
the  several  stations,  and  in  no  other  way. 

The  apparatus  which  has  just  been  described  is  mahufactured 
by  the  Eco  Magneto  Clock  Company. 


%<m&M,«j6%wi>«»,-«^ 


The  Acme  Watchman's  Time  Detector. 

In  this  system,  which  is  manufactured  by  the  Holtzer-Cabot 
Electric  Company,  the  record  is  made  upon  a  paper  dial  by  needle 
points.  A  separate  electro-magnet  is  in  circuit  with  each  station, 
and  when  energized  causes  its  corresponding  needle  point  to  punch 
a  hole  in  the  dial.    The  dial  revolves  by  clockwork  and  is  renewed 


THE  COMPLETE  COST-KEEPER. 


403 


every  day.    This  system  can  be  operated  either  by  magneto  stations 
or  by  batteries.     The  former  is  recommended. 

The  clock  cannot  be  tampered  with ;  for  a  mechanical  device 
makes  a  registration  on  the  dial  each  time  the  door  is  opened  or 
dosed. 

It  has  been  found  disadvantageous  to  operate  more  than 
twenty-five  stations  upon  one  movement,  so  that  when  more  sta- 
tions are  required,  which  may  be  the  case,  especially  when  several 
watchmen  are  employed,  the  stations  are  sub-divided,  and  two  or 
more  dials  are  used. 

These  time  detectors  are  furnished  with  a  register  dial  only, 
or  with  a  regulator  time-piece  also,  as  shown  in  the  accompanying 
cut. 

The  punch  points  or  needles  are  mounted  independently  of 
the  lever  arms,  and  each  is  enclosed  in  a  small  brass  tube  contain- 
ing a  spiral  spring,  which  brings  it  back  from  the  dial  after  it  has 
been  forced  through  the  paper  in  making  a  registration.  The 
lever  arms  which  strike  the  punch  points  are  accurately  balanced. 


The  Emerson  Time  Stamp. 

The  Emerson  Time  Stamp  is  a  clock  with  a  rubber  stamp  on 
the  back  end  in  counterpart  of  the  dial  and  hands  on  the  front 
end.  The  hands  on  the  printing  end  are  connected  with  the  clock 
center  in  the  same  manner  as  are  the  hands  on  the  face  of  the 
clock.    The  former  are  therefore  always  moving  in  unison  with 


404 


THE  COMPLETE  COST-KEEPER. 


the  hands  in  front,  so  that  whenever  you  take  up  the  clock,  ink 
the  back  end  upon  an  ordinary  ink  pad  and  presss  it  Hghtly  upon  a 
paper,  you  will  have  printed  an  imitation  of  the  clock  face,  indi- 
cating the  hour  and  minute  of  time. 

The  pressure  required  in  the  operation  of  printing  is  very 
gentle,  but  no  matter  what  amount  of  pressure  may  be  used,  it 
can  do  no  injury  to  the  clock,  as  in  the  mechanism  provision  is 
made  to  intercept  any  pressure,  be  it  great  or  small. 

This  time  stamp  records  the  year,  the  month,  the  day,  the 
hour  and  the  minute  of  any  transaction  or  occurrence.  The  name 
of  owner  will  be  placed  in  the  border  of  the  dial  and  made  a  part 
of  the  printing  face  of  the  stamp,  if  so  desired. 

The  Emerson  Time  Stamp  Company  are  the  manufacturers 
of  this  appliance. 


"National"  Electric  Watchman's  Clock. 

The  special  feature  of  the  watchman's  detector  system  manu- 
factured by  the  National  Electrical  Manufacturing  Company  is 


THE  COMPLETE  COST-KEEPER.  405 

the  double  registry  of  the  watchman's  visit  to  each  station,  first, 
at  the  station  itself,  and  second,  on  the  dial  of  the  clock;  one 
registry  being  a  check  against  the  other. 

In  case  of  an  accident  to  the  wires  which  would  prevent  the 
clock  from  registering,  or  in  case  of  the  stoppage  of  the  clock,  the 
boxes  will  show  the  number  of  visits  of  the  watchman. 

The  clock  will  record  the  visits  of  the  watchman  for  seven 
days,  without  attention  or  the  change  of  the  registration  dial. 

The  station  boxes  do  not  require  any  special  attention ;  they 
may  be  inspected  every  week  or  only  once  each  month,  as  circum- 
stances may  require.  They  are  constructed  entirely  of  metal,  and, 
if  carefully  laced,  would  indicate  after  a  fire  whether  or  not  the 
watchman  had  faithfully  performed  his  duties,  even  though  the 
clock  had  been  destroyed. 

Inside  the  station  box  are  four  dials,  with  pointers,  which 
register  the  number  of  visits,  up  to  10,000,  made  by  the  watch- 
man, while  the  dial  on  the  clock  records  both  the  number  of  visits 
and  the  time  of  each  visit.  The  number  of  the  visits  on  the  clock- 
dial  should,  of  course,  correspond  with  the  sum  of  the  numbers  on 
the  box  dials,  if  the  watchman's  rounds  have  been  faithfully  made. 
There  is  no  complicated  mechanism  to  get  out  of  order.  The 
electrical  machinery  and  circuits  are  of  the  simplest  kind,  but 
one  magnet  being  used  for  one  or  twenty  stations. 

The  Elliott  and  Hatch  Book  Typewriter. 

The  Elliott  and  Hatch  Book  Typewriter  will  write  in  bound 
books  of  every  description,  regardless  of  their  dimensions ;  and 
will,  besides,  write  upon  single  sheets  of  paper  as  well  as  an  ordin- 
ary typewriter. 

In  this  machine  the  writing  surface  upon  which  the  paper  lies 
is  perfectly  flat  and  stationary.  The  writing  mechanism  moves  over 
the  surface.  The  operator  has  complete  control  of  the  writing 
point  and  can  convey  it  over  the  writing  surface  almost  as  easily 
as  he  can  a  pen.  A  very  simple  device  lowers  the  writing  point  to 
accommodate  a  single  sheet  of  paper  or  the  thickest  book  manu- 
factured. 

No  special  book  is  required  for  this  typewriter.  Any  ordinary 
book,  with  any  Icind  of  binding,  may  be  used  with  success.  The 
machine  is  made  in  five  sizes  to  accommodate  all  sizes  of  books. 


4o6 


THE  COMPLETE  COST-KEEPER. 


The  Book  Typewriter. 


The  writing  plate,  or  platen,  lies  underneath  the  leaf  of  the 
book,  and  the  frame  upon  which  the  writing  mechanism  is  placed 
holds  it  firmly  in  position.  The  type  bars  strike  downward  upon 
this  solid,  flat  surface,  and  from  fifteen  to  twenty  copies  can  be 


Book  Typewriter  with  Tabulating  Attachment. 

made  upon  manifold  paper  without  increasing  the  force  with 
which  the  key  is  struck. 

The  accompanying  illustration  represents  one  of  the  larger 
sizes  of  the  typewriter  equipped  with  the  tabulating  attachment. 
This  machine  writes  a  line  twenty-one  inches  long,  and  the  tabula- 
tor admits  of  any  number  of  columns  being  written.  The  carriage 
jumps  to  the  desired  column  automatically.  This  attachment  can 
be  applied  to  all  sizes  of  the  machine,  which  are  manufactured  by 
the  Elliott  &  Hatch  Book  Typewriter  Company. 


THE  COMPLETE  COST-KEEPER. 
The  Calculagraph, 


407 


The  calculagraph  is  an  instrument  which  makes  a  mechanical 
calculation  and  a  printed  record  of  the  net  result. 

As  illustrated  in  the  accompanying  cut,  it  is  desigfned  to  com- 
pute and  record  elapsed  time,  and  also  the  value  of  elapsed  time  in 

dollars  and  cents  at  some  fixed  rate 
per  hour.  The  elapsed  time  record 
may  be  made  in  minutes  and  frac- 
tions of  a  minute,  in  which  form  it 
is  peculiarly  adapted  to  telephone 
service,  in  recording  the  time  of 
conversations;  or  it  may  be  made 
in  hours  and  minutes.  In  the  lat- 
ter form -it  has  a  maximum  capacity 
of  twelve  hours  and  is  well  suited 
for  a  variety  of  purposes,  being  of 
great  use  in  every  place  where 
labor  is  employed  and  paid  by  the 
hour. 

The  dollar  and  cent  instru- 
ment, or  that  form  of  the  calcula- 
graph which  computes  the  value  of 
elapsed  time  and  prints  the  result  in  dollars  and  cents,  with  a 
minimum  record  of  one  cent,  and  a  maximiun  of  twelve  dollars, 
can  be  geared  to  calculate  at  any  rate  per  hour  from  ten  cents  to 
two  dollars.  It  may  be  used  to  produce  vouchers  for  the  pay  roll 
of  workmen  who  are  paid  for  the  number  of  hours  employed,  at 
some  uniform  rate  per  hour. 

The  calculating  instrument  is  also  provided  with  an  auxiliary 
attachment  in  the  form  of  a  time  stamp,  which  will  print  the  time 
of  day  as  shown  on  the  visible  dial,  in  addition  to  the  result  of  the 
calculation  above  described.  The  operator  may  with  this  attach- 
ment print  the  time  of  day  a  workman  commenced  and  the  time  he 
finished  work,  as  well  as  the  amount  of  his  earnings,  and  thus  the 
employer  will  be  supplied  with  data  to  settle  all  disputes  which 
may  arise  as  to  the  accuracy  of  the  latter  record. 

The  calculagraph  is  constructed  of  the  best  materials  and  is 
substantial  and  durable.    It  is  8|  inches  in  diameter  and  5  inches 


408  THE  COMPLETE  COST-KEEPER. 

high,  and  is  furnished  in  several  forms :  In  a  portable  case,  as 
shown  in  the  illustration ;  or  fitted  with  a  flange  and  adapted  to  be 
supported  in  an  opening  in  a  counter  or  bench,  with  its  top  flush 
with  the  top  of  the  counter;  or  mounted  upon  a  pedestal,  adjust- 
able in  height,  with  a  base  which  can  be  screwed  to  the  floor.  The 
clock  contained  in  the  calculagraph  runs  eight  days,  has  a  visible 
dial,  and  is  accurate  and  reliable. 

The  printing  mechanism  is  operated  by  means  of  two  levers  at 
the  top  and  requires  no  special  skill.  Any  person  competent  to 
insert  a  ticket  in  the  slot  and  pull  the  levers  may  work  it.  The 
operation  is  entirely  noiseless,  and  is  accompanied  by  no  pound- 
ing or  jarring  of  the  mechanism.  The  number  of  separate  calcula- 
tions and  records  which  may  be  made  on  a  single  instrument  is 
limited  only  by  the  number  of  times  it  is  possible  to  insert  tickets 
in  the  slot  and  pull  the  levers.  The  completion  of  the  record  is 
correctly  made  on  each  ticket  without  reference  to  the  order  in 
which  the  records  were  commenced. 


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